Question

In the Balance Sheet of a company, debentures are shown under which head?

• A. Unsecured loan
• B. Long-term borrowings
• C. Current liabilities
• D. Reserve & Surplus

Hint:

Debentures always appear under Non-current liabilities (Long-term borrowings).

Answer 1

The Correct Option is B

Step 1: Nature of debentures.
Debentures represent borrowed funds repayable after a long duration.
Step 2: Classification.
In company Balance Sheet (as per Schedule III, Companies Act, 2013): - Share capital → Shareholders’ funds. - Debentures → Non-current liabilities → Long-term borrowings.
Step 3: Conclude.
Thus, debentures are shown under Long-term borrowings.
Final Answer: \[ \boxed{\text{Long-term borrowings}} \]