CUET Preparation Today
| Which of the following are the part of Total Borrowings in the Balance sheet of a company in the context of Schedule III of the Companies Act 2013? |
Long-term borrowings Current maturities to long-term debt Both 1 and 2 Neither 1 nor 2 |
| Both 1 and 2 |
| Borrowings: As per Schedule III of the Companies Act 2013, total borrowings are categorised into long-term borrowings, short-term borrowings and current maturities to long-term debt. (i) Loans which are repayable in more than twelve months/operating cycle are classified as long-term borrowings on the face of balance sheet. (ii) Loans repayable on demand or whose original tenure is not more than twelve months/operating cycle are classified as short-term borrowings on the face of balance sheet. (iii) Current maturities to long-term loan include amount repayable within twelve months/operating cycle under other current liabilities with Note to Account. |
