Issue of 8% debentures is shown under which sub-head in the balance sheet of a company.

Long term borrowings

The correct answer is option 1- Long term borrowings.

Issue of 8% debentures is shown under Long term borrowings sub-head in the balance sheet of a company.

NON-CURRENT LIABILITIES shall include the liabilities due after one year. It shall include the following:

• Long-term Borrowings: Such as Debentures, Loan from Bank, Loan from other parties.
• Deferred Tax Liabilities.
• Other Long term Liabilities: Such as Premium Payable on Redemption of Debentures; Premium Payable on Redemption of Preference Shares, Public Deposits (Unless specified, it will be assumed that deposits are for more than one year.)
• Long-term Provisions: Such as Provision for Employee Benefits, Provision for Provident Fund, Provision for Warranties.