In which heading the Unsecured Loan taken from directors by a private limited company to be shown as per revised schedule VI
ashish gupta ( student) (1922 Points)
13 April 2012In which heading the Unsecured Loan taken from directors by a private limited company to be shown as per revised schedule VI
kavitha
(studying final)
(830 Points)
Replied 13 April 2012
A liability shall be classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in the company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date; or
(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
All other liabilities shall be classified as non-current.
A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.
go through this n decide accordingly
regards
kavitha
kavitha
(studying final)
(830 Points)
Replied 13 April 2012
just go through every defination under non cuurent liabilities n current liabilities n decide
ashish gupta
( student)
(1922 Points)
Replied 13 April 2012
Thanks kavitha.
lets discuss this. loan from directors doesnot have any particular time period or payment terms so basically it is payable on demand. and it is not trade payable also.
So i think it will be a current liability - short term borrowing unsecured.
what u say
CAclubindia
