Part VI of the Act deals with apportioning the old state's assets and liabilities. A physical asset located in one successor State, money held centrally, an outstanding loan, a contract, a pension promise and shares in a state corporation do not all follow one simple formula. The Act sets different rules by asset type and allows adjustment or agreement in specified cases. A claim that “all assets were split by population” is therefore too broad.

The useful exam method is a decision tree. First identify the legal owner immediately before 2 June 2014. Next identify whether the item is immovable property, a treasury balance, public debt, a corporation asset or a service liability. Then find the relevant section or schedule and the date of the accounting record. Finally check whether later orders, agreements or litigation changed practical distribution. A newspaper number without those steps cannot settle a dispute over a Hyderabad-headquartered institution or a remote project.

Worked example: An undivided-state office owns a parcel in present AP and movable equipment in Hyderabad. Territorial location may determine one asset treatment, while other allocation clauses and orders can govern different property. Start with asset type, location and the Act's applicable provision; then inspect the successor-State allocation order. A current nameplate on a building is weak evidence of legal title.

Active recall: List four different asset or liability classes and explain why one ratio cannot allocate all of them.