Financial statements Balance sheet

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the correct classification of 'creditors for expenses' on a balance sheet. While initially questioned if it belonged under 'trade payables', the consensus is that accrued liabilities, such as for utilities or professional fees where invoices are pending, should be listed under 'Other Current Liabilities – Accrued Expenses' rather than 'Trade Payables' for accurate financial reporting.

Preet Bhati

Preet Bhati (Querist)

05 March 2024 "Creditors for expenses" will appear under which head and sub head of balance sheet?
Will it be under sub head of "trade payable" or sub head of "Other current liabilities"

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 March 2024 Show it in trade payable

Preet Bhati

Preet Bhati (Querist)

05 March 2024 Thank you so much 🙏🏻🙏🏻

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 March 2024 Welcome 🤗🤗🤗

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

16 August 2025 Please note that accrued liabilities (e.g., for utilities, salaries, or professional fees where invoices are pending) must not be shown under Trade Payables. Instead, book them under Other Current Liabilities – Accrued Expenses to ensure proper classification and completeness of the balance sheet.

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