Arrangement of Items under Equities and Liabilities

As per Schedule III of the Companies Act, 2013, the Balance Sheet of a company follows a specific order for presenting items under "Equities and Liabilities".

Standard Format Order:

1. Shareholders' Funds (C)

• This appears first and includes Share Capital and Reserves & Surplus
• Represents the owners' equity in the company

2. Share Application Money Pending Allotment (D)

• Money received from applicants for shares but allotment is pending
• Shown separately until shares are formally allotted

3. Non-Current Liabilities (A)

• Long-term obligations not due within one year
• Includes long-term borrowings, deferred tax liabilities, long-term provisions

4. Current Liabilities (B)

• Obligations due within one year or operating cycle
• Includes short-term borrowings, trade payables, short-term provisions

Correct Sequence:

The arrangement follows the principle of permanence, starting with the most permanent source (Shareholders' Funds) and ending with the most temporary (Current Liabilities).

Order: (C) → (D) → (A) → (B)

This corresponds to Option 3: (C), (D), (A), (B)