Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Where will the Premium on Redemption of Debentures be shown in the company's balance sheet?
Options:
Short-term Borrowings
Long-term Borrowings
Short-term Provisions
Other Long-term Liabilities
Correct Answer:
Other Long-term Liabilities
Explanation:
The Premium on Redemption of Debenture is shown in the Notes to Accounts under the sub-head of 'Other Long-term Liabilities'. The final balance is shown under the main head of 'Non-Current Liabilities' on the Equity and Liabilities side of the Company's Balance Sheet.