Question

Premium on Redemption of Debentures is shown in the Balance Sheet as ______.

Options

• Long-term Borrowings.

• Short-term Borrowings.

• Other Long-term Liabilities.

• Short-term Provisions.

Answer 1

Premium on Redemption of Debentures is shown in the Balance Sheet as Other Long-term Liabilities.

Explanation:

Mining rights represent a company’s legal right to extract minerals from the ground. They have long-term economic value but completely lack physical substance. Under Schedule III of the Companies Act, any valuable non-physical resource used for multiple years is classified strictly under intangible assets.