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Question :

If 10,000, 9% Debentures of  Rs. 100 each are issued on 1st April, 2019 redeemable on 31st January, 2021. These debentures will be shown as ------------- under the head ---------- in the Balance Sheet as at 31st March, 2020.

Option 1:

Long term borrowing and non-current liabilities 

 

Option 2: Short term borrowing and current liabilities

Option 3: Trade payable 

Option 4: None of the above


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Short term borrowing and current liabilities


Solution : Answer = Short-term borrowing and current liabilities

The 9% Debentures issued on April 1, 2019, and redeemable on January 31, 2021, will be classified as short-term borrowings and current liabilities in the Balance Sheet as of March 31, 2020. This classification reflects their status as debts due for repayment within one year, aligning with current liabilities.
Hence, the correct option is 2.

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