Debentures are shown under which of the following head in the Balance Sheet?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Non Current Liabilities.
In the Balance Sheet of a company, the Liabilities are to be divided into two parts: Current and Non Current. Non-current liabilities are those obligations not due for settlement within within one year. These liabilities are separately classified in an entity's balance sheet, away from current liabilities.
Debentures is a non current Liability and will be shown under the Sub head "Long term Borrowings".