Under the New Companies Act 2013, 'Loans from Related Parties' is considered as _________________.

Reserves and surplus

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Short-term brrowings

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Long-term borrowings

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Any of the above

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Solution

The correct option is C Long-term borrowings
Loan from related parties are generally the loans which are taken to be repaid over a period of time which is usually more than 12 months. Hence, they will be shown under the head Non current liabilities under the sub head long term borrowings.

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Similar questions

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Under the New Companies Act 2013, 'Loans from Related Parties' is considered as _________________.

The correct option is C Long-term borrowingsLoan from related parties are generally the loans which are taken to be repaid over a period of time which is usually more than 12 months. Hence, they will be shown under the head Non current liabilities under the sub head long term borrowings.

The correct option is C Long-term borrowings
Loan from related parties are generally the loans which are taken to be repaid over a period of time which is usually more than 12 months. Hence, they will be shown under the head Non current liabilities under the sub head long term borrowings.