In balance sheet "interest accrued and not due on debentures" should be shown in ______.

Debentures

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Current liability

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Miscellaneous expenditure

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Current assets

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Solution

The correct option is B Current liability
No interest is payable on debentures are issued as collateral security. Interest accrued and due on debentures appear under the head 'Secured Loans'. Interest accrued but not due on debentures appear under the head 'Current Liabilities'.

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