What is the prescribed order of writing the following provisions in the Balance Sheet of companies as required by the Indian Companies Act, 1956, Part I, Schedule VI: 1. Provision for contingencies 2. Proposed dividends 3. Provision for taxation 4. Provision for Provident Fund scheme Select your answer:

The correct answer is: C. 2, 1, 3, 4

The provisions are to be written in the following order in the Balance Sheet of companies as required by the Indian Companies Act, 1956, Part I, Schedule VI:

1. Provision for taxation
2. Provision for contingencies
3. Proposed dividends
4. Provision for Provident Fund scheme

The provision for taxation is the amount that a company has set aside to pay its taxes. The provision for contingencies is the amount that a company has set aside to cover unexpected expenses. The proposed dividends are the amount of money that a company has proposed to pay its shareholders as dividends. The provision for Provident Fund scheme is the amount that a company has set aside to pay its employees’ Provident Fund contributions.

The order of the provisions is important because it shows the order in which the company will pay its debts. The company must first pay its taxes, then its contingencies, then its dividends, and finally its Provident Fund contributions.