Question

Interest accrued and due on debentures is shown in a Company’s Balance Sheet under the sub-head ______.

Options

• Short-term Provisions.

• Other Current Liabilities.

• Short-term Borrowings.

• Trade Payable.

Answer 1

Interest accrued and due on debentures is shown in a Company’s Balance Sheet under the sub-head Other Current Liabilities.

Explanation:

Interest accrued and due is an immediate short-term obligation where the payment date has already passed. According to Schedule III of the Companies Act, 2013, since it is a separate outstanding interest liability and not the principal borrowing or a trade debt, it is strictly classified under the sub-head ‘Other Current Liabilities’ under the main head of Current Liabilities.