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Assertion: A Ltd issued 5,00,000, 9% Debentures of Rs.100 each on 1st April 2016,redeemable in 5 equal yearly instalments starting from 31st March2017. Rs.4,00,00,000 Debentures will be shown under Noncurrent liabilities and Rs.1,00,00,000 Debentures will be shown under Current liabilities Reason: Rs.1,00,00,000 Debentures are to be redeemed after the operating cycle of the company and will be classified as “Current maturities of long term borrowings. a) Both A and R are correct b) A is correct, but R is wrong c) A is wrong, but R is correct d) Both A and R are wrong |
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Answer» b) A is correct, but R is wrong |
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