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Arrange the following liabilities in the order of company balance sheet. (i) Bank Overdraft (ii) Bank…

In a company's Balance Sheet prepared in the standard order of permanence under the Companies Act, long-term owners' funds appear first, followed by long-term debt, current…

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Arrange the following liabilities in the order of company balance sheet.

(i) Bank Overdraft

(ii) Bank Loan

(iii) Share Capital

(iv) Provision for Taxation

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Answer and explanation

Correct answer C

In a company's Balance Sheet prepared in the standard order of permanence under the Companies Act, long-term owners' funds appear first, followed by long-term debt, current liabilities, and provisions. Accordingly, the sequence starts with Share Capital (iii), followed by Secured/Unsecured Bank Loan (ii), Current Liabilities such as Bank Overdraft (i), and finally Provisions such as Provision for Taxation (iv), yielding iii, ii, i, iv.

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