Borrowed Funds (Long term Liabilities)
These are those outsiders liabilities which are not repayable within a period of 12 months loans taken bay the company should be assumed to be long term unless otherwise given.
Examples : Bank loan
% Debentures
Public deposits
Fixed Deposits
Loans from Directors
Loans from Financial Institutions
Loans form Directors
Loan taken by the Company general public etc.
These long term liabilities carries fixed rate of Interest, which is classified
as Financial Expenses ( in P/L A/c Dr. Side). And these long term liabilities can
further be classified as either secured loan or unsecured loan.
The Loan taken from Banks & Financial Institutions should always be treated as secured loan Unless or
otherwise given.
These are those outsiders liabilities which are not repayable within a period of 12 months loans taken bay the company should be assumed to be long term unless otherwise given.
Examples : Bank loan
% Debentures
Public deposits
Fixed Deposits
Loans from Directors
Loans from Financial Institutions
Loans form Directors
Loan taken by the Company general public etc.
These long term liabilities carries fixed rate of Interest, which is classified
as Financial Expenses ( in P/L A/c Dr. Side). And these long term liabilities can
further be classified as either secured loan or unsecured loan.
The Loan taken from Banks & Financial Institutions should always be treated as secured loan Unless or
otherwise given.