Schedule vi

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)
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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?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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23 July 2025 Here's the treatment for **accrued interest on long-term debentures**:

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### 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.

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### 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.

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### 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) |

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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.

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Would you like sample journal entries for this treatment too?

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