Assertion (A): While preparing the Balance Sheet as at 31st March, 2025, if ₹ 5,00,000, 10% debentures are redeemable on 31st October, 2025, they will be shown under main head ‘Current Liabilities’ and sub-head ‘Other Current Liabilities’ as ‘Current Maturities of long-term Debts.’ Reason (R): Debentures becoming due for redemption within 12 months from the date of Balance Sheet are shown as Current Maturities of Long-term Debts under the main head Current Liabilities. In the context of the above two statements, which of the following is correct?

Question

KollegeApply · Accepted Answer

Both (A) and (R) are true and (R) is a correct explanation of (A).

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