CC and Unsecured Loan

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to present Cash Credit (CC) and unsecured loans on a balance sheet. A CC is typically a short-term liability. Unsecured loans are classified as current liabilities if payable within one year, or long-term liabilities if payable over more than one year.

Nisha Kathuria

Nisha Kathuria (Querist)
Follow

05 April 2023 Dear Sir,

Please suggest we have cash Credit Limit in HDFC bank and some Unsecured loan from parties so in balance Sheet we have to show under Long Term Borrowings Or Short Term Borrowings

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 April 2023 CC is Short term liability.
If the unsecured loan is raised for a short term ( payable within one year) then the same will be reflected as Current liability in the balance sheet.
If on the other hand the same is payable over a period more than one year then it is classified as Term Liability or Long term liability.

Message likes : 1 times

Nisha Kathuria

Nisha Kathuria (Querist)
Follow

05 April 2023 Thank you very much Sir,

Message likes : 2 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 April 2023 You are welcome.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now