Balance Sheet Classification of Loan Amount:

Introduction:
In the balance sheet, loans taken by a company are classified based on their repayment tenure. The loan amount of Rs. 25 lakhs taken by Vinod Limited from HDFC Bank, which is to be repaid over a period of 15 years, will be shown under the category of long-term borrowings.

Explanation:
The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of assets, liabilities, and equity. Liabilities are further classified into current liabilities and long-term liabilities.

Current Liabilities:
Current liabilities are obligations that are due within one year or the normal operating cycle of the business, whichever is longer. Examples of current liabilities include accounts payable, short-term borrowings, and current maturities of long-term debt. Since the loan taken by Vinod Limited has a repayment tenure of 15 years, it does not fall under the category of current liabilities.

Long-Term Borrowings:
Long-term borrowings are liabilities that are due after one year or the normal operating cycle of the business, whichever is longer. They include loans, debentures, bonds, and other long-term debt instruments. The loan amount of Rs. 25 lakhs taken by Vinod Limited falls under this category as it is to be repaid over a period of 15 years.

Significance of Classification:
Correctly classifying the loan amount in the balance sheet is crucial as it provides transparency to the stakeholders about the company's long-term financial obligations. By segregating the long-term borrowings, investors, creditors, and other interested parties can assess the company's ability to meet its long-term debt obligations, evaluate its financial stability, and make informed investment decisions.

Conclusion:
The loan amount of Rs. 25 lakhs taken by Vinod Limited from HDFC Bank, which is to be repaid in 15 years, will be shown as a long-term borrowing in the balance sheet. This classification provides transparency and facilitates the assessment of the company's long-term financial obligations.