Question

A company took a term loan of Rs.50 lakh from the bank in December 2025. If the loan has to be repaid in 5 equal yearly instalments starting from December 2026, which of the following correctly describes how this loan will be presented in the Financial Statements of the company as on 31st March 2026 according to Schedule III?

A Long term borrowings Rs.50 lakh
B Other-Long term borrowings Rs.50 lakh
C Other current liabilities Rs.10 lakh; Other-Long term borrowings Rs.40 lakh
D Other current liabilities Rs.10 lakh; Long term borrowings Rs.40 lakh
E Short term borrowings Rs.10 lakh; Long term borrowings Rs.40 lakh
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