Net Current Assets
This query is : Resolved
24 August 2009
Whether bank overdraft should be disclosed under current liabilities or secured loan in balance sheet prepared under companies act 1956
Guest
Guest
(Expert)
24 August 2009
Dear Neeta
The same should be disclosed under Secured Loans>>Loans and Advance from Banks.
Hope this assists you.
You can write to me at ca.hims@gmail.com for any further help.
Thanks & Best Regards
ca.hims@gmail.com
I'm a freelance consultant and you can reach at my email ID ca.hims@gmail.com anytime for your advisory needs including CA related, career and financial planning. For more details visit my profile.
The same should be disclosed under Secured Loans>>Loans and Advance from Banks.
Hope this assists you.
You can write to me at ca.hims@gmail.com for any further help.
Thanks & Best Regards
ca.hims@gmail.com
I'm a freelance consultant and you can reach at my email ID ca.hims@gmail.com anytime for your advisory needs including CA related, career and financial planning. For more details visit my profile.
24 August 2009
agree with expert
Guest
Guest
(Expert)
24 August 2009
Thanks Suresh
25 August 2009
The same should be disclosed under SL also it can be under current liabilities. i tell you the circumstances where it can be CL
25 August 2009
Short term debt are current liabilities. This means any debt that is due within one year.
If Cash in Bank has a negative balance then it is no longer an asset. It is a liability and it is a current liability
If Cash in Bank has a negative balance then it is no longer an asset. It is a liability and it is a current liability
25 August 2009
well as other said bank OD is shown on the liability side of
the balance sheet,i will say the same.
but we should first know that what is OD.Basically bank OD
is the facility given by the banks to withdraw more money
from the respective a/c then it posses,suppose a company has
a sum of rupees 2 lakh in its a/c but it withdraw Rs 3lakh,
it means that the bank has given loan of Rs 1lakh, which the
company as to pay back.
we all know that loan is the liability for the company so
the bank OD will be shown on the liability side, under the
head current liability and provision
the balance sheet,i will say the same.
but we should first know that what is OD.Basically bank OD
is the facility given by the banks to withdraw more money
from the respective a/c then it posses,suppose a company has
a sum of rupees 2 lakh in its a/c but it withdraw Rs 3lakh,
it means that the bank has given loan of Rs 1lakh, which the
company as to pay back.
we all know that loan is the liability for the company so
the bank OD will be shown on the liability side, under the
head current liability and provision
25 August 2009
OD can be shown under Secured Loan as generally they are secured against Book Debts !! :)
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