Question

Interest accrued but not due on loans 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 but not due on loans appear in a company’s balance sheet under the sub-head other current liabilities.

Explanation:

Interest accrued but not due on loans means interest has accumulated (accrued) on a loan, but the payment date hasn’t arrived yet. Since it represents an obligation that will be settled within 12 months, it is shown as a Current Liability, specifically under:

Current liabilities → Other current liabilities