Debentures are shown in Balance Sheet under: MCQ with Answer and Explanation

Debentures are shown in Balance Sheet under:
A. Long-term borrowings
B. Share capital
C. Reserves and surplus
D. Current liabilities
Answer: Option A
Solution (By JKSSB Mock Tests)
Debentures are long-term borrowings unless they are due within 12 months, then current liabilities.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Under Ind AS 19, actuarial gains and losses on defined benefit plans are recognized in Other Comprehensive Income (OCI). S2: These actuarial gains and losses recognized in OCI are subsequently reclassified to the Profit and Loss account in future periods. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. S1 only
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
Ind AS 19 requires remeasurements (actuarial gains/losses) of defined benefit plans to be recognized in OCI. S2 is incorrect because these amounts are recognized directly in retained earnings and are NOT reclassified (recycled) to P&L in subsequent periods.

Question #2
The Indian Financial Management System for government accounting follows which method?
A. Cash basis
B. Accrual basis only
C. Hybrid basis
D. Mercantile basis

Correct Answer: Option A


Explanation:
Government accounting in India is primarily on cash basis, though there are moves towards accrual basis.

Question #3
'Benami Transactions' are prohibited under:
A. Companies Act
B. Benami Transactions (Prohibition) Act, 1988
C. Income Tax Act
D. GST Act

Correct Answer: Option B


Explanation:
Benami property transactions are illegal under the Benami Act.