Question
Unpaid matured
debentures/deposits?Solution
Current liabilities are obligations that a company expects to settle within its normal operating cycle or within one year from the reporting date, whichever is longer. Unpaid matured debentures/deposits refers to debentures or deposits that have reached their maturity date but have not yet been paid by the company. When debentures or deposits mature, the company is obligated to repay the principal amount to the debenture or deposit holders. If these obligations are not settled within the current operating cycle or one year, they are classified as current liabilities on the company's balance sheet. Therefore, unpaid matured debentures/deposits would be classified as a current liability because they represent obligations that are expected to be settled in the short term, typically within one year.
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