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Ratio

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(Querist)
07 January 2014 dear,
please tell me whether cash credit account balance will be included in current liabilities while calculating current ratio of particular entity...?
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CA Bhargav

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CA Bhargav (Expert)
07 January 2014 ...........................................................................................................
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CA DHEERAJ

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CA DHEERAJ (Expert)
08 January 2014 Sir Cash credit is provide by bank and is not a unsecured loan, because bank cash credit is given on mortage basis, and cash credit comes under current liability

if you calculate current ration then such cash credit amount include your current liablity,

but if you calculate liquid ratio then such cc not include in your current liablitiy
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