While preparing the Balance Sheet of a Company which item is shown under the head lsquo Long term Bo...........

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While preparing the Balance Sheet of a Company which item is shown under the head ‘Long term Borrowings’?

6% Debentures

Security Premium Reserve

Trade Payables

None of the above

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Explanation:

- 6% Debentures: These are long-term financial instruments used by companies to borrow money. They have a fixed interest rate and are repayable over a period longer than a year, making them long-term borrowings.

- Correct Answer

- Security Premium Reserve: This is part of the shareholder's equity on a balance sheet. It arises from the issuance of shares at a premium. Not related to borrowings.

- Trade Payables: These are short-term financial obligations a company needs to pay to its suppliers. They are classified under current liabilities, not long-term borrowings.

- None of the above: This is not applicable, as 6% Debentures fit the criteria for long-term borrowings.