Question

Explain the major classifications and subtotals on the balance sheet.

Answer 1

Basically balance is divided into two major parts i.e. Asset and Liabilities.

Liabilities comprises of below major sub classification in it and its sub total:

1. Shareholder Funds : This includes Share Capital and Reserves and Surplus

2. Non Current Liabilities: This includes long term borrowings, Deferred Tax Liabiliries, Long term provision and other non current liabilities

3. Current Liabilities: This includes Short Term Borrowings, Trade Payables, Short Term Provision and other current liabilities.

Assets comprises of below major sub classification in it and its sub total:

1. Non Current Assets : This includes Property Plant Equipment, Long term Investment, Long term loans and advances, Deferred Tax assets and othe r Non Current Assets

2. Current Assets” This includes Inventories, Trade Receivables, Cash and Cash equivalents, Short term loans and advances and other current assets.