1.

Arrange the following items in the order of liquidity.a) Long term loans b)Bank overdraftc) Capital d)Debentures e)Creditorsf) Bills payable​

Answer»

ANSWER:

Assets and liabilities are to be shown in the balance sheet in an order. There are two WAYS of showing the items of assets & liabilities i.e. Order of permanency and order of liquidity. This is also called as marshaling of balance sheet.

ACCORDINGLY , items to be shown as :

SHARE Capital

Bank Loan

Bank Overdarft

Provision for Taxation.



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