lsquo Accumulated Dividend Arrears rsquo on preference shares is shown in the Company rsquo s Balan...........

General Accounting Principles Company Final Accounts

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‘Accumulated Dividend Arrears’ on preference shares is shown in the Company’s Balance Sheet as :

Current Liability

Contingent Liability

Commitments

Short-term Provision

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Explanation:

Commitments means financial commitments due to activitues agreed to by the company to be under taken by it in future . They are to be classified into :

estimated amounts of contracts remaining to be executed on capital account and not provided for;
uncalled liability on shares and other investments partly paid; and
other commitments (nature to be specified) .