Glow Limited had taken a loan of 5,00,000 in June, 2023. The loan is to be repaid in 10 half yearly equal installments starting from December, 2023.…

CA Intermediate · Advanced Accounting · PYQS · January 2025
Glow Limited had taken a loan of 5,00,000 in June, 2023. The loan is to be repaid in 10 half yearly equal installments starting from December, 2023. Determine how the remaining loan will be classified in the Balance Sheet as on 31st March, 2024 as per Schedule III of the Companies Act, 2013?
(A) ₹ 3,50,000 is to be shown under the head 'Long term borrowings and - 1,00,000 is to be shown under the head 'Short term borrowings"
(B) ₹ 3,50,000 is to be shown under the head 'Long term borrowings and - 75,000 is to be shown under the head "Short term borrowings" and - 25,000 is to be shown under the head 'Other Current liabilities."
(C) ₹ 4,50,000 is to be shown under the head 'Long term borrowings"
(D) ₹ 3,50,000 is to be shown under the head 'Long term borrowings' and - 1,00,000 is to be shown under the head 'Other Current liabilities."

Suggested Answer and Working Notes:

Correct Answer: Option (A)

₹ 3,50,000 is to be shown under the head 'Long term borrowings and - 1,00,000 is to be shown under the head 'Short term borrowings"

Topics: Preparation of Financial Statements

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