17 August 2012
Suppose a company has taken a loan from a banking company which is to be repayable in five annual equal instalments . How the same will be classified in current year annual accounts as per revised schedule VI ? (A) Long term Borrownings OR (B)Instalment to be due within 12 Months from the B/S date is to be treated as short term Borrowing/Current Liability and remaing loan amount is to be treated as Long term Borrowing Which is better way for Presentation In Balance Sheet ? Please advice
With reference to the guidance note issued by ICAI installments & interest payable with in 12 months are current liability and remaining loan will be shown as long term liability.
Also note that you are also requires to show the terms and conditions and security against the above mention loans in the notes.
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