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
