Based on following case, answer question.

A Ltd issued 2,000, 10% debenture of ₹100 each on April 1, 2019 at a discount of 10% redeemable at a premium of 10% after five years. Company purchased assets of the book value of ₹2,20,000 from B Ltd. at book value and agreed to make payment of purchase consideration by issuing another 2000, 10% Debentures of ₹100 each at a premium of 10% on above mentioned date only.

Debenture issued will be shown in the Balance Sheet as at Mar. 31, 2020 under:

Long Term Borrowings

The correct answer is option 2- Long Term Borrowings.

Most companies turn to raising long-term funds also through debentures which are issued either through the route of private placement or by offering the same to the public. The finances raised through debentures are also known as long-term debt. It is shown under the main head non current liabilities with subhead of long term borrowings.