Liabilities

Liabilities

The amount which the company owes to outsider.

There is three types liabilities-

      A long terms liabilities

      Current liabilities (short terms liabilities)

A long terms liabilities

Which fall due for payment

In long  period . (  Normally after more one year)

Example

•  LONG TERMS LOAN
•  LONG TERMS DEBENTORES

CURRENT LIABILITIES

Which are to be paid in near future (normally within one year)

Example

• BANK OVERDRAFT
•  BILLS PAYBLE
•  CREDITORS
•  SHORT TERMS LOAN
•  OUTSTANDING EXPENSES

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