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Interest accr...

Question

Interest accrued but not due on loan should be included under?

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Solution

Interest accrued, but not due on loan should be included under capital liabilities. This is because it is considered as an obligation on the company’s part, and it has to be met within 12 months period. Therefore, it is part of capital liabilities.

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Q. How are the following items shown while preparing Balance Sheet of a company:
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(ii) Interest accrued and due on Debentures;
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Q. Explain Accrued interest but due on borrowing

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