Question

6% Debentures appear in a company’s balance sheet under the sub-head ______.

Options

• Long-term Provisions

• Long-term Borrowings

• Other Current Liabilities

• Other Long-term Liabilities

Answer 1

6% Debentures appear in a company’s balance sheet under the sub-head long-term borrowings.

Explanation:

6% Debentures are a type of long-term debt instrument issued by a company, carrying a fixed interest rate (in this case, 6%). Since debentures are typically repayable after more than 12 months, they are classified as:

Non-current liabilities → Long-term borrowings