Liabilities side of balance sheet includes three types of liabilities: fixed liabilities, current liabilities and long term liabilities
1. Fixed Liabilities
Those liabilities which are payable to the owners only on the liquidation of the company after making the payment of other outside liabilities are called fixed liabilities.
2. Current Liabilities
Current liabilities are those type of liabilities which are payable out of current assets within the next accounting period.Bills payable,short term bank overdraft are the examples of current liabilities.These liabilities are always recorded in the liabilities side of balance sheet.
3. Long term Liabilities
Long term liabilities are those liabilities which are not payable within the next accounting period but will be payable within next few years. Debentures are the example of long term liabilities.
1. Fixed Liabilities
Those liabilities which are payable to the owners only on the liquidation of the company after making the payment of other outside liabilities are called fixed liabilities.
2. Current Liabilities
Current liabilities are those type of liabilities which are payable out of current assets within the next accounting period.Bills payable,short term bank overdraft are the examples of current liabilities.These liabilities are always recorded in the liabilities side of balance sheet.
3. Long term Liabilities
Long term liabilities are those liabilities which are not payable within the next accounting period but will be payable within next few years. Debentures are the example of long term liabilities.