Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
In the Balance Sheet of a Company, Debentures are shown under which head?
Options:
Unsecured Loans
Secured Loans
Current Liabilities
Non Current Liabilities
Correct Answer:
Non Current Liabilities
Explanation:
In the Balance Sheet of a Company, Debentures are shown under non current liabilities. Noncurrent 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. Examples of noncurrent liabilities are: Long-term portion of debt payable and Long-term portion of bonds payable.