Case: At the balance sheet date, Eshan Foods Ltd has dividend declared in an earlier year that remains unclaimed by shareholders and is held in its unpaid dividend bank account. Under Schedule III, unclaimed dividend is shown under:

Correct answer: D) Other Current Liabilities

Explanation

Once a dividend is declared, it becomes a debt owed to shareholders. The unclaimed amount continues to be a liability and Schedule III requires it to be disclosed under 'Other Current Liabilities'. It is not a provision, since the amount is certain, and it is not a reserve.