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

Question 8 Chapter 1 of +2-B

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
         

 

 

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)

  • 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)

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

2 Book 3 min 225x300 - Question 8 Chapter 1 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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