Question 7 Chapter 1 of +2-B – T.S. Grewal 12 Class

Question 7 Chapter 1 of +2-B

Question 7 Chapter 1 of +2-B

7. State giving whether Trade receivables are classified as Current assets
or non-current assets 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)
11011
21012
31013
41413
51516
   

 

The solution of Question 7 Chapter 1 of +2-B: – 

 

Case

Operating Cycle Period (months)

Expected Realisation Period (months

Conditions Applied

Classified as

11011Expected Realisation Period is within 12 months from the date of the balance sheet.Current Assets
21012Expected 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 Assets
31013Expected 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 Assets
41413Expected 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 Assets
51516Expected 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 Assets
     

 

 

To understand more about Balance Sheet please check out following links:

Balance Sheet: Meaning, Format & Examples

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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)

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

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

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

2 Book 3 min 225x300 - Question 7 Chapter 1 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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