Term loand for 10 years

This query is : Resolved

Rajesh (Querist)
Follow

20 June 2010 Should we have to disclose liability of term loan repayable within one year as
Current Liability?
With regards,
Rajesh

Sorry Experts, I shall put my question more clearly.
The Term loan is repayable in 10 years amounting Rs 250 lakhs.

In year 1 the principal repayment amounts 25 lakhs

Now whether we have to show in the balance sheet Rs.25 lakhs in current liabilities and the balance Rs.225 lalkhs as term loans. Else we have to show Rs. 250 lakhs as term loan in the balance sheet

Thank u sir Mr. Rasesh and the other expert.
With regards,
Rajesh

CA Punit

CA Punit (Expert)
Follow

20 June 2010 The whole of the Rs.250 L should be shown as Term Loan.
It is not correct to show the instalment which has become payable as current liability & the balance as Term Loan.

Message likes : 1 times

Vivek Raju P

Vivek Raju P (Expert)
Follow

03 January 2011 Current liabilities are those which fall due for payment in the 12 months following the balance sheet date. They are those that come due for payment in the normal operating cycle. The cutoff is taken as 1 year.

In the above case there will be 2 components the 25 lacs falling due in 1 year is a current liabiliity the other portion can be acrried forward as non current.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

GST Karimnagar state

Darshan

Krishnamohan Gangaraju

CA Bijo scaria

Subscribe Now

Term loand for 10 years

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA