Where will Debentures be shown which are redeemable after 9 years from the date of issue?

Long term Borrowings

The correct answer is option 1- Long term Borrowings.

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.

Thus, debentures which are redeemable after 9 years is long term borrowing.