For a company following Division I of Schedule III to the Companies Act, 2013: Assertion (A): Balance…
Both the assertion and the reason are true. Part I of Division I of Schedule III to the Companies Act, 2013 sets out the balance sheet under two broad heads, Equity and…
Choose your answer
For a company following Division I of Schedule III to the Companies Act, 2013:
Assertion (A): Balance Sheet is prepared under two broad heads viz “Equity and Liabilities” and “Assets”
Reason (R): The Companies Act,2013, prescribes under Part I of Division I of Schedule III that “Equity and Liabilities” to be shown first followed by “ Assets”
Answer and explanation
Correct answer B
Both the assertion and the reason are true. Part I of Division I of Schedule III to the Companies Act, 2013 sets out the balance sheet under two broad heads, Equity and Liabilities followed by Assets. The reason correctly states that Schedule III prescribes Equity and Liabilities first, followed by Assets, so neither statement is false.
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Kerala SET (LBS Centre)