Assertion (A): Bank Overdraft is shown under ‘Short term borrowings’ in a Company's Balance Sheet. Reason (R): Current Year's Provision for tax is shown under ‘Other Current Liabilities’ in a Company's Balance Sheet. In the context of the above two statements, which of the following is correct?

Question

KollegeApply · Accepted Answer

Only (A) is correct. Explanation: Bank Overdraft is rightly shown under Short-term Borrowings, so Assertion (A) is correct. However, Provision for Tax is shown under Short-term Provisions, not under Other Current Liabilities, so Reason (R) is incorrect.

AChoose Your Answer