Question

How is ‘Current Maturities of Long Term Debt’ disclosed in the Balance sheet of a company?

Answer 1

For instance, on April 1, 2016, X Ltd. issued ₹10,000,000 debentures, which could be redeemed on April 1, 2017, in five equal annual installments. In this instance, ₹2,00,000 that can be redeemed within a year from the balance sheet date, or as of March 31, 2017, will be displayed as “Current Maturity of Long-term Debts,” while the remaining ₹8,00,000 will be displayed as long-term borrowings. The company's balance sheet displays the current maturities of long-term debt under the main heading "Current Liabilities" and the subhead “Short term Borrowings.”