Schedule vi

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2012 wats the treatment of accrued interest on long term debenture if the interest is payable in next 3 months..
i mean..where it sud be disclosed?
under wich head?

Kumar

Kumar (Expert)

02 October 2012 Other Current liabilities

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 and wat sud be the treatment if the interest on debentures becomes payable i.e. outstanding?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

23 July 2025 Here's the treatment for **accrued interest on long-term debentures**:

---

### 1. **Accrued interest on long-term debentures payable within next 3 months (i.e., short-term liability):**

* This interest amount is **accrued but not yet paid**, and since the payment is due within the next 12 months (3 months here), it should be classified as a **current liability**.
* **Disclosure Head:**

* Under **"Other Current Liabilities"** or **"Interest accrued but not due"** (depending on company’s chart of accounts).
* This is because it is a liability that will require payment shortly.

---

### 2. **When the interest becomes payable (outstanding interest):**

* It remains under **Current Liabilities**, generally under **"Interest accrued and due"** or **"Interest outstanding"**.
* Once paid, it will be adjusted against cash/bank.

---

### Summary:

| Situation | Disclosure Head |
| ------------------------------------------- | -------------------------------------------------------- |
| Accrued interest (payable within 12 months) | Other Current Liabilities (Interest accrued but not due) |
| Interest amount due and outstanding | Other Current Liabilities (Interest accrued and due) |

---

If interest is not payable within 12 months (say after 1 year), then it will be treated as a **non-current liability** under long-term provisions, but since your case is payable in 3 months, it is a current liability.

---

Would you like sample journal entries for this treatment too?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now