Fixed liability

A/c entries 694 views 1 replies

Anjali

article

31 Points Joined July 2012

Hii,

Reserve Capital is the fixed liability of the concern?

Replies (1)

StarShines

Student CA Final

35 Points Joined September 2012

Originally posted by : Anjali
	Hii, Reserve Capital is the fixed liability of the concern?

Hi Anjali !

The quick answer is "NO". Reserves are categorized as "Capital Reserves" such as Share Premium Account and "Revenue Reserves" such as Retained Earnings.

Fixed liabilities are those liabilities, which are payable in more than one accounting period such as a 3-year long-term loan. These liabilities are also called Non-Current Liabilities.

Hope that helps.

Profound Regards,

StarShines