Question

Interest accrued and due on debentures appear in a company’s balance sheet under the sub-head ______.

Options

• Short-term Borrowings

• Trade Payables

• Other Current Liabilities

• Short-term Provisions

Answer 1

Interest accrued and due on debentures appear in a company’s balance sheet under the sub-head other current liabilities.

Explanation:

Interest accrued and due on debentures refers to interest that has accumulated (accrued), and is due for payment, but has not yet been paid as of the balance sheet date. Because it is due within 12 months, it is classified as a current liability, specifically under:

Current liabilities → Other current liabilities