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    Question

    As per Schedule III, which of the following is not a current liability?

    A Short term Borrowings Correct Answer Incorrect Answer
    B Interest accrued but not due on borrowings Correct Answer Incorrect Answer
    C Deferred Tax Liability Correct Answer Incorrect Answer
    D Trade Payable Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    As per Schedule III of Companies Act 2013, the liabilities are shown as

    EQUITY AND LIABILITIES
    Shareholders’ Fund
    [if !supportLists]-->a. [endif]-->Share Capital (A)
    [if !supportLists]-->b. [endif]-->Reserves and Surplus (B)
    [if !supportLists]-->c. [endif]-->Money received against share warrants
    Share application money pending allotment
    Non-Current Liabilities
    [if !supportLists]-->a. [endif]-->Long-Term Borrowings (C)
    [if !supportLists]--> b. [endif]--> Deferred Tax Liabilities (Net)
    [if !supportLists]-->c. [endif]-->Other-Long Term Liabilities (D)
    [if !supportLists]-->d. [endif]-->Long-Term provisions (E)
    Current Liabilities
    [if !supportLists]-->a. [endif]-->Short-Term Borrowings (F)
    [if !supportLists]-->b. [endif]-->Trade Payables (G)
    [if !supportLists]-->c. [endif]-->Other current liabilities
    [if !supportLists]-->d. [endif]-->Short-Term provisions (H)
    TOTAL
    Note in above – Deferred Tax Liabilities are part of non-current liabilities Current liabilities include: · Short-Term Borrowings – shall include loans repayable on demand (from banks and from other parties), loans and advances from related parties, deposits, other loans and advances, and current maturities of long term borrowings · Trade Paybles · Other Current Liabilities – includes current maturities of finance lease obligations (note – current maturities of long term debt are now shown under short term borrowings), interest accrued but not due on borrowings, interest accrued and due on borrowings, income received in advance, unpaid dividend, unpaid matured deposits, unpaid matured debentures, other payables. [if !supportLists]-->· [endif]--> Short-Term Provisions – Provision for employee benefits and others of short-term nature

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