What are Liability in Tally Accounting?
What is liability in Accounting often we hear the word liability in business, so friends what is this liability . In this post, I will tell you in full detail what is liability , and how many types are they. Often people look at liability and assets with almost the same look, but it is not so at all, both of them are different.
Friends, first of all let me tell you that liability is called responsibility. If a company has taken loan or money from any bank or any person, then it is the liability of the company to return the loan or money to the person or bank from which it has borrowed.
Liability is completely legal, if you have taken money from any bank or finance company or have bought any item, then it is also your liability, and it is necessary to pay you, if you do not do this then the front The party has every right to take action against you.
Types Of Liability in Tally Accounting
Friends Liability is also of two types
1. Current liability / Short Term Liability
2. Non Current Liability / Long Term Liability
Current Liability / Short Term Liability :- Friends, Current Liability, we call that Liability which we have to pay within one year, like:-
1. Accounts Payble (Which has to pay money to those who have borrowed goods from the company)
2. Short Term debt (loan taken for 1 year)
Non Current Liability / Long Turm Liability:- Friends, Long Turm Liability is that Liability, which the company has to pay in more than one year, this time can be five years, and can be more.
Examples of Long Term Liability in Tally
1. Long Term Loan
2. car loan
3. building loan
4. Construction loan
When the Balance Sheet is prepared, both the assets and the liability are shown in the balance sheet, so many newcomers do not know what are the liability and what are the assets, I will give you some examples of these two. You will get more clear difference between both assets and liability.
Example of Assets and liability
1. Car loan
2. Land loan
3. Bus loan
4. Animal loan
5. Machinery loan
6. Assets loan
7. Bank loan
Meaning of assets is applied to all those items which give profit to the business in the business for a long time. like:-
Example of Assets
8. Computers and printers
Friends, if the liability of a company is increasing continuously, then understand that the company is going into loss, because increasing the liability means either the company is taking loan from somewhere, or money. And friends, if you want to see the financial position of a company, then you should look at its balance sheet. The balance sheet shows all the assets and liabilities of the company, so that you can find out the exact position of the company.
If the assets are high and the liability is low, then the company is at a good profit, and if the company’s liability is high, then the company has debt.
Are outstanding expenses a Liability for a Company?
There are many such expenses in business, which are paid by a businessman or company at the end of the year, it is called outstanding expenses. It is the cost of those whose services have been taken by the company but till now that service has not been paid by the company. The outstanding expenses are the liability on the company which is to be paid by the company in the current year. Many companies pay the services at the end of the year instead of every month. This is the type of loan above the company, which is to be given to the company in the same year in which it has taken the services. Therefore the outstanding expenses are the current liability for a company.
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