Question

Debentures are shown under which head in the Balance Sheet of a company?

• A. Shareholders’ Funds
• B. Current Liabilities
• C. Non-current Liabilities
• D. Current Assets

Hint:

Debentures are long-term borrowings, therefore shown under Non-current Liabilities.

Answer 1

The Correct Option is C

Concept: Debentures represent borrowed funds of the company. They are long-term borrowings and therefore classified under non-current liabilities.

Step 1: Understanding debentures.
Debentures are:
• Debt instruments
• Issued to raise long-term finance

Step 2: Classification in Balance Sheet.
Under Schedule III: \[ \text{Long-term Borrowings} \] are shown under: \[ \text{Non-current Liabilities} \]

Step 3: Selecting correct answer.
Hence: \[ \boxed{\text{Non-current Liabilities}} \] Correct option: \[ \boxed{(C)} \]