Question 8 Chapter 1 of +2-B - T.S. Grewal 12 Class

Question 8 Chapter 1 of +2-B

8. State giving whether Trade Payables are classified as Current liabilities
or non-current liabilities in the balance sheet of a company as per
schedule III of the Companies act,2013 in the following cases:

Case (1)	Operating Cycle Period (months)	Expected Realisation Period (months)
1	10	11
2	10	12
3	10	13
4	14	13
5	15	16

 

The solution of Question 8 Chapter 1 of +2-B: - 

 

Case	Operating Cycle Period (months)	Expected Realisation Period (months	Conditions Applied	Classified as
1	10	11	Expected Realisation Period is within 12 months from the date of balance sheet.	Current Liabilities
2	10	12	Expected Realisation Period is 12 months which is equal to a period of 12 months from the date of balance sheet although it is more than the Operating Cycle period.	Current Liabilities
3	10	13	Expected Realisation Period is more than the Operating Cycle period and also exceed the period of 12 months from the date of the balance sheet.	Non-Current Liabilities
4	14	13	Expected Realisation Period is less than the operating Cycle period although it is more than the period of 12 months from the date of the Balance Sheet.	Current Liabilities
5	15	16	Expected realization period is more than the Operating Cycle period and also exceed the period of 12 months from the date of the Balance Sheet.	Non-Current Liabilities

 

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication