On 1 January 2012 Paul borrowed £60,000 from his friend Peter agreeing to repay the amount in five equal instalments commencing from 1 January 2012. Ignore interest. How will the amount owed to Peter be reported in Paul’s Statement of financial position as at 31 December 2012?

(a) £60,000 as non-current liability

(b) £60,000 as current liability

(c) £12,000 as current liability and £36,000 as non-current liability

(d) £18,000 as current liability and £48,000 as non-current liability