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

Which of the following is correctly classified under Non-current liabilities in the Schedule III Balance Sheet?

Deferred tax liabilities (net) are presented under non-current liabilities. Short-term bank borrowings, current tax liabilities and trade payables due within the operating cycle are current liabilities, so only deferred tax liability among the options belongs in the non-current liabilities section.

  1. ADeferred tax liabilities (net)Correct
  2. BShort-term borrowings from banks
  3. CCurrent tax liabilities (net)
  4. DTrade payables due within the operating cycle

Explanation

Deferred tax liabilities (net) are a separate line under non-current liabilities. Short-term borrowings, current tax liabilities and trade payables are current liabilities.

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