Question

Debentures repayable after 12 months or after the period of Operating Cycle from the date of Balance Sheet are shown in the Balance Sheet of a company under the head of ______.

Options

• Non-current Liabilities.

• Current Liabilities.

• Share Capital.

• None of these.

Answer 1

Debentures repayable after 12 months or after the period of Operating Cycle from the date of Balance Sheet are shown in the Balance Sheet of a company under the head of Non-current Liabilities.

Explanation:

Debentures repayable after 12 months or beyond the operating cycle are long-term obligations. Therefore, they are shown under Non-current Liabilities in the Balance Sheet.