Question

While preparing the Balance Sheet of a Company which item is shown under the head ‘Long term Borrowings’?

Options

• 6% Debentures

• Provision for Tax

• Calls in Advance

• Unpaid Matured Debentures

Answer 1

6% Debentures

Explanation:

6% Debentures are a form of long-term debt raised by the company and are typically repayable after more than 12 months. Therefore, they are shown under:

Non-Current Liabilities → Long-term Borrowings