Question

Interest Accrued but not Due on Debentures will be shown under the heading ______.

Options

• Current Assets.

• Current Liabilities.

• Contingent Liabilities.

• Non-current Assets.

Answer 1

Interest Accrued but not Due on Debentures will be shown under the heading Current Liabilities.

Explanation:

Interest Accrued but not Due on Debentures represents an interest expense that a company has already incurred but is not yet legally required to pay until a future date, which falls within the current financial year. Under corporate financial reporting standards (such as Schedule III of the Companies Act), it is specifically categorized under the sub-heading of “Other Current Liabilities” because the payment is a short-term obligation expected to be settled within 12 months.