Question

Interest accrued but not due on investment will be shown under which head of Current Assets?

Options

• Short-term Loans and Advances

• Current Investments

• Other Current Assets

• Cash and Cash Equivalents

Answer 1

Other Current Assets

Explanation:

Interest accrued but not due on investments represents income that the company has earned, but the official date for its payment has not yet arrived. According to Schedule III of the Companies Act, 2013, since this is a temporary receivable and not the actual principal amount of the investment itself, it is strictly classified under the sub-head Other Current Assets under the main head of Current Assets.