What do you mean by Grouping and Marshalling?

The assets and liabilities should be shwn in certain order in the Balance Sheet. Therefore, they should be srranged in certain groups and in particular order. This is called ‘Grouping’ and ‘Marshelling’ of the Balance Sheet.

Grouping:- Means putting items of a similar nature under a common heading.

Marshelling:- The arrangement of assets and liabilities in a particular order in the Balance Sheet