According to Part I of Schedule III of the Companies Act 2013, the Balance Sheet is prepared in a vertical format with the following sequence:
Equity and Liabilities side:
- Shareholders' Funds (Share Capital + Reserves and Surplus)
- Non-Current Liabilities
- Current Liabilities
Assets side:
- Non-Current Assets
- Current Assets
From the given items, the correct order of appearance is:
(D) Shareholders' Fund → appears first under "Equity and Liabilities"
(A) Non-Current Liabilities → appears second under "Equity and Liabilities"
(B) Current Liabilities → appears third under "Equity and Liabilities"
(C) Current Assets → appears last on the "Assets" side (after Non-Current Assets)
Therefore, the sequence is: D, A, B, C which corresponds to Option 1.
The Balance Sheet follows a top-to-bottom approach where equity items are shown first, followed by liabilities (arranged from non-current to current), and then assets (arranged from non-current to current).