Accounting Multiple Choice Question – 30 August 2021

A company’s Balance Sheet at 31 December 2019 included the following 

Long term liabilities  —  Loan (repayable on 30 April 2021)  —  £50,000

Long term liabilities  —  10% debentures (2019 – 2025)  —  £100,000

The company intends to redeem half the debentures on 31 December 2021 and the remainder on 1 July 2022. 

How should these liabilities be shown in the Balance Sheet at 31 December 2020?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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