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50,000, 9% Debentures redeemable within ...

50,000, 9% Debentures redeemable within 12 months of the date of Balance Sheet will be shown under :

A

Short-term Borrowings

B

Short-term Provision

C

Other Current Liability

D

Trade Payables

Text Solution

Verified by Experts

The correct Answer is:
C
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A Ltd. Issued 5,000, 9% Debentures of 100 each at par and also raised a loan of ₹ 80,000 from bank, collaterally secured by ₹ 1,00,00, 9% Debentures. How will be the Debentures shown in the Balance Sheet of the company when the company has passed journal entry for issue of Debentures as collateral security in the books?

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