Term loan taken from bank repayable in 5 years needs to be disclosed under head borrowings.

short-term

No worries! We‘ve got your back. Try BYJU‘S free classes today!

other

No worries! We‘ve got your back. Try BYJU‘S free classes today!

long-term

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

current

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C long-term
If any loan is taken from an outsider and repayable after 12 months, then it is shown under the head long term borrowing.

Suggest Corrections

Similar questions

Q. Short-term borrowings will include all loans which needs to be settled within a period of from the date of the loan.

Q. Loan is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Hero Ltd. has raised following long-term loans on 1st April, 2018:

10,000; 10% Debentures of ₹ 100 each redeemable in four equal yearly	₹
installments beginning 1st July, 2019	10,00,000
11% Bank Loan from SBI repayable after 5 years	20,00,000
Interest on Debentures and Bank Loan has not yet been paid.

How will be the above items shown in the Balance Sheet of the company as at 31st March, 2019?

A borrower comes into the bank and pays off 100 Rupees of his loan. This was a cash payment by the borrower to the bank. What will the bank do because of this loan repayment?

Sudhakar borrows $R s . 15000$ from a bank to renovate his house. He borrows the money at $9 %$ p.a. simple interest over $8$ years. What is his monthly repayment.

Join BYJU'S Learning Program

Term loan taken from bank repayable in 5 years needs to be disclosed under head borrowings.

The correct option is C long-term If any loan is taken from an outsider and repayable after 12 months, then it is shown under the head long term borrowing.

The correct option is C long-term
If any loan is taken from an outsider and repayable after 12 months, then it is shown under the head long term borrowing.