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CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

Under the Division I (Ind AS) format of the Balance Sheet in Schedule III, which of the following items is shown under the main head 'Equity' rather than under 'Liabilities'?

Securities premium is shown under Equity, within Other Equity as part of reserves and surplus. Trade payables, provisions for employee benefits and unpaid dividend are liabilities, so they appear under non-current or current liabilities and not under the Equity head of the Balance Sheet.

  1. ASecurities premiumCorrect
  2. BTrade payables
  3. CProvision for employee benefits
  4. DUnpaid dividend account

Explanation

Equity comprises equity share capital, other equity (reserves and surplus such as securities premium, retained earnings) and money received against share warrants. Trade payables, provisions and unpaid dividends are liabilities, either current or non-current.

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