Introduction to Financial Markets (405) — CBSE Class 10 board question

The liability section of a company's balance sheet includes the following items:

1. Share Capital – funds raised by issuing shares.
2. Reserves and Surplus – retained earnings and accumulated reserves.
3. Secured Loans – borrowings backed by assets as collateral.
4. Unsecured Loans – borrowings without collateral.
5. Current Liabilities and Provisions – amounts due to creditors, advances received, accrued expenses, and provisions for tax, dividend, etc.

Source: Chapter 9, Balance Sheet: Account Form

The examiner expects students to list the heads from the liability side of the balance sheet as given in the Account Form. For 2 marks, naming and briefly describing 4–5 items is sufficient. Avoid writing lengthy descriptions; one-line explanations per item are enough.