Question:
In the Balance Sheet of a company, debentures are shown under which head?
In the Balance Sheet of a company, debentures are shown under which head?
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Debentures always appear under Non-current liabilities (Long-term borrowings).
Updated On: Sep 13, 2025
- Unsecured loan
- Long-term borrowings
- Current liabilities
- Reserve & Surplus
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The Correct Option is B
Solution and Explanation
Step 1: Nature of debentures.
Debentures represent borrowed funds repayable after a long duration.
Step 2: Classification.
In company Balance Sheet (as per Schedule III, Companies Act, 2013): - Share capital → Shareholders’ funds. - Debentures → Non-current liabilities → Long-term borrowings.
Step 3: Conclude.
Thus, debentures are shown under Long-term borrowings.
Final Answer: \[ \boxed{\text{Long-term borrowings}} \]
Debentures represent borrowed funds repayable after a long duration.
Step 2: Classification.
In company Balance Sheet (as per Schedule III, Companies Act, 2013): - Share capital → Shareholders’ funds. - Debentures → Non-current liabilities → Long-term borrowings.
Step 3: Conclude.
Thus, debentures are shown under Long-term borrowings.
Final Answer: \[ \boxed{\text{Long-term borrowings}} \]
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