Types of Liabilities

  • Current liabilities
  • non-current liabilities/Long-Term Debt
  • Share holder equity section

Definition of current Liabilities

Current liabilities are Those liabilities which must be payable within a year by a company is called current liabilities.

Example of current liabilities

  • sundry creditors
  • Overdraft
  • A/C payable
  • Bills payable
  • short term loan
  • Outstanding expenses
  • Accrued expenses etc.

Long term liabilities

Long term liabilities are those liabilities which must be payable more than one year is called long term liabilities.

Example of long term liabilities

  • Notes payable
  • Bank loan
  • Mortgages loan
  • Bond payable
  • 10% Debenture

Share holder equity section

  • Share capital
  • paid up capital
  • Retained earning

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