Question

50,000, 9% Debentures redeemable within 12 months of the date of balance sheet will be shown under ______.

Options

• Other Current Liability

• Short-term Provision

• Short-term Borrowings

• Trade Payables

Answer 1

50,000, 9% Debentures redeemable within 12 months of the date of balance sheet will be shown under short-term borrowings.

Explanation:

Debentures redeemable within 12 months of the balance sheet date are no longer long-term liabilities, as they are due for repayment soon. So, ₹ 50,000 worth of 9% debentures maturing within a year should be classified as a current liability, specifically under:

Current liabilities → Short-term borrowings