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What are to be included within current liabilities on the balance sheet? How would debt due...

What are to be included within current liabilities on the balance sheet? How would debt due next year be classified if the creditor has agreed to take land for payment?

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Answer #1

Current Liabilities mean those liabilities or company's debts that become due with in one year (twelve Months) or with in a operating cycle.

BALANCE SHEET is a statement showing assets , liabilities and capital of a bsuiness organisation at a particular point of time.

Balance sheet has two sides (i) Asset side (ii) Liability side

Assets = Liabilities + Equities

Debt due next year will be classified as

Creditors in the Current Balance Sheet that means the creditors will stand in the Current BAlance sheet and

In the next year, we weill write off the Creditors who have agreed to take land for payments.

and also Land wlll also be written off from the asset side.

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