There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A): Interest accrued but not due and interest accrued and due are shown as Other Current Liabilities.
Reason (R): Since both interests accrued but not due and interest accrued and due are payable within 12 months from the date of the Balance Sheet, they are shown as Other Current Liabilities.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Those who must pay interest will record the accrued interest as an expense on the income statement and a liability on the balance sheet. If payable within one year, it is recorded as a current liability. If payable in more than 12 months, it is recorded as a long-term liability. Interest accrued but not due on loan should be included under the head current liabilities as it is an obligation on the part of the company and has to be met within a period of 12 months and hence will be regarded as a current liability.