Arrange the following liabilities in the order of company balance sheet. i. Bank Overdraft ii. Bank Loan iii. Share Capital iv. Provision for Taxation

The correct answer is: C. iii, ii, i, iv

A company balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. Assets are things that a company owns and expects to benefit from in the future, such as cash, inventory, and property. Liabilities are things that a company owes to others, such as accounts payable and loans. Equity is the difference between a company’s assets and liabilities.

Liabilities are typically listed on a balance sheet in order of their maturity, with the most short-term liabilities listed first. Bank overdrafts are the most short-term liabilities, as they are loans that a company can draw on at any time. Bank loans are also short-term liabilities, but they are typically repaid over a longer period of time than bank overdrafts. Share capital is the amount of money that shareholders have invested in the company. Provision for taxation is a liability that represents the company’s estimated tax liability for the current year.

Therefore, the correct order of the liabilities in a company balance sheet is:

1. Bank overdrafts
2. Bank loans
3. Share capital
4. Provision for taxation