Read the following data of a company and answer the question.
 
Public deposits-  ₹4,00,000
O/S Expenses-   ₹10,000
Calls in advance-   ₹25,000
Provision for employee benefits-   ₹20,000  (maturing within operating cycle of the company)
Provision for taxation-    ₹1,50,000

What will be the subhead of public deposits in the company's balance sheet?

Long term borrowings

The correct answer is option 3- Long term borrowings.

Public deposits come under long-term borrowings whose major head is non-current liabilities.

NON-CURRENT LIABILITIES shall include the liabilities due after one year. It has 4 sub heads:

1. Long-term Borrowings: Such as Debentures, Loan from Bank, Loan from other parties, public deposits
2. Deferred Tax Liabilities
3. 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.)
4. Long-term Provisions: Such as Provision for Employee Benefits, Provision for Provident Fund, Provision for Warranties.