Under which head debentures are shown in the Balance Sheet of a company?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Long-term borrowings
Debentures are loans taken by a company, usually repayable after many years. In the Schedule III balance sheet they are shown under Non-current Liabilities, sub-head Long-term borrowings. Only the part due for redemption within the next twelve months moves to current liabilities. Share capital is the owners' money, so borrowed money such as debentures never goes under it.
NCERT (2026-27 edition):
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