Balance Sheet Statement

Step 1: Nature of debentures.
Debentures represent borrowed funds repayable after a long duration.
Step 2: Classification.
In company Balance Sheet (as per Schedule III, Companies Act, 2013): - Share capital → Shareholders’ funds. - Debentures → Non-current liabilities → Long-term borrowings.
Step 3: Conclude.
Thus, debentures are shown under Long-term borrowings.
Final Answer:

Step 1: Companies Act, 2013 provisions.
As per Schedule III of Companies Act, 2013, the prescribed format of Balance Sheet is vertical.
Step 2: Explanation of vertical format.
The vertical format lists liabilities and assets in a top-to-bottom manner, starting with equity & liabilities and then showing assets.
Step 3: Eliminate wrong options.
- (A) Horizontal: This was the earlier format under old law, not applicable now.
- (C) Both: Wrong, only vertical is prescribed.
- (D) None: Wrong, as vertical is correct.
Step 4: Conclude.
Thus, the Balance Sheet as per Companies Act, 2013 is prepared in vertical form.
Final Answer: