Financial statement of a company | Part 3 - | Class 12 Accounts | CA Pradeep Assiwal

Non-Current Assets & Current Assets in Company Balance Sheet 🎯 | Class 12 Accounts Chapter 10 Master the complete classification, sub-headings, and Notes to Accounts for Non-Current Assets (NCA) and Current Assets (CA) under Schedule III (Part I) of the Companies Act, 2013! Learn Property, Plant and Equipment (PPE), Intangible Assets, Capital WIP, Non-Current Investments, Inventories, Trade Receivables, Cash and Cash Equivalents, and other current assets to score full marks in your CBSE Board Exams! Hey Class 12 Commerce Superstars! 👋 Welcome back to our dedicated masterclass series on Chapter 10: Financial Statements of a Company (Analysis of Financial Statements). Now that we have completely decoded the Equity & Liabilities side (Shareholders' Funds, Non-Current Liabilities, and Current Liabilities), it is time to master Part II of the vertical Balance Sheet: ASSETS! What We Cover in This Masterclass: 🏗️ Section 1: Overview of Part II — Assets under Schedule III Structural layout of the Assets side: Why assets are presented in order of permanent commitment to liquidity. The 2 Primary Major Heads: Non-Current Assets (Assets intended for continued use, not meant for resale within 12 months/Operating Cycle). Current Assets (Assets expected to be realised in cash, sold, or consumed within the normal Operating Cycle or 12 months). 🏛️ Section 2: Non-Current Assets (NCA) — The 5 Sub-Heads Decoded Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment (PPE): Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipment. (ii) Intangible Assets: Goodwill, Brand/Trademarks, Computer Software, Mining Rights, Patents, Copyrights. (iii) Capital Work-in-Progress (CWIP): Tangible assets currently under construction/erection. (iv) Intangible Assets Under Development: Patents, software, or licenses under active development. Non-Current Investments: Long-term investments in Property, Equity Instruments, Preference Shares, Debentures, Mutual Funds, and Government/Trust Securities. Distinction between Trade Investments and Other Investments. Deferred Tax Assets (Net): Meaning and presentation of deferred tax assets resulting from temporary timing differences. Long-Term Loans and Advances: Capital Advances (advances given for acquiring capital assets), Security Deposits given for utility connections, rent, or tenders (long-term). Other Non-Current Assets: Long-term trade receivables (due after 12 months/operating cycle), unamortized insurance or expenses payable beyond 12 months. ⚡ Section 3: Current Assets (CA) — The 6 Core Sub-Heads Current Investments: Short-term investments readily realisable and intended to be held for not more than 12 months (e.g., Treasury Bills, short-term mutual funds). Inventories: Raw materials, Work-in-progress, Finished goods, Stock-in-trade, Stores & spares, and Loose tools. Critical disclosure rule: Loose tools and stores & spares are included under Inventories, NOT under PPE! Trade Receivables: Debtors and Bills Receivable arising out of ordinary sales. Sub-classification: Secured (considered good), Unsecured (considered good), and Doubtful, with Provision for Doubtful Debts shown as a specific deduction. Cash and Cash Equivalents: Balances with banks, Cheques/drafts on hand, Cash on hand, and Bank deposits with original maturity of less than 3 months. Short-Term Loans and Advances: Loans and advances repayable within 12 months or the operating cycle, advances to suppliers for goods. Other Current Assets: Prepaid expenses, Accrued income/interest, Advance tax (Net of provision for tax). 📊 Section 4: Live Practical Drills & Board Exam Classification Tables Solving high-frequency board exam questions: "State the Major Head and Sub-Head for given asset items." Drafting statutory Notes to Accounts for Property, Plant and Equipment, Inventories, and Trade Receivables. Navigating examiner traps on Loose Tools, Capital Advances vs. Supplier Advances, and Current Investments. 💬 Class Challenge: State the Major Head and Sub-Head under Schedule III (Part I) of the Companies Act, 2013 for the following two items: (1) Capital Advances, and (2) Computer Software under development. Drop your answers in the comments below! 👇 #FinancialStatementsOfACompany #Class12Accounts #NonCurrentAssets #CurrentAssets #ScheduleIII #CompanyBalanceSheet #PropertyPlantEquipment #IntangibleAssets #InventoriesClass12 #TradeReceivables #Class12Accountancy #CBSECommerce #CommerceClass12 #TSGrewalSolutions #DKGoelAccounts #BoardExamPrep2026 #AccountingPractical #CUETCommerce #AccountsRevision #AnalysisOfFinancialStatements