What is long term debt

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Long term debt also consist of gratuity payable to employees or it just consist of soucres of finances????

Amol S Joglekar

Amol S Joglekar (Expert)

18 May 2016 Debt? Do you mean Loan? Long term loan is the loan which extends beyond a period of 3 years. Short term loan is the one which is less than 1 years tenure. The in between should be regarded as Medium Term Loan.
But what is your query for Gratuity Payable.......It is NOT loan.....it is a liability

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Ok....i got it......funds acquired for running the business are considered as debts. Please further elaborate directors' loan and directors' mother loan is to be considered under debt???

Amol S Joglekar

Amol S Joglekar (Expert)

18 May 2016 it will go to unsecured loan.........

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Actually i have to make some detail to be given to bank....that's why i am asking....this is to be considered under other long term debt or other short term debt? and bank overdraft (cc account) is to be shown under other short term debt????

Amol S Joglekar

Amol S Joglekar (Expert)

18 May 2016 that will depend upon the repayment period of the said loans. If the loans are repayable in coming one year, then they will be treated as SHORT term.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 That i will ascertain sir long term or short term....you just please confirm whether directors'loan, directors'relative loan and bank overdraft come under the definition of Debt or not??

Amol S Joglekar

Amol S Joglekar (Expert)

19 May 2016 yes, loan taken from director / director's mother fall under unsecured loan

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