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CA Foundation · Accounting · Company Accounts

Under Schedule III (Division I), which of the following items is shown under 'Non-Current Liabilities' in the Balance Sheet?

Debentures redeemable after three years are shown under Non-Current Liabilities as long-term borrowings, because they are repayable beyond twelve months. Current maturities of long-term debt and trade payables are current liabilities, and undeclared proposed dividend is not a liability at all.

  1. ADebentures redeemable after three yearsCorrect
  2. BCurrent maturities of long-term debt
  3. CProposed dividend not yet declared
  4. DTrade payables due within 60 days

Explanation

Debentures repayable beyond twelve months are long-term borrowings under Non-Current Liabilities. Current maturities of long-term debt fall due within twelve months and are shown under Current Liabilities. Trade payables due within the operating cycle are current. Proposed dividend not declared is not recognised as a liability.

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