Net Current Assets

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Neeta (Querist)
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24 August 2009 Whether bank overdraft should be disclosed under current liabilities or secured loan in balance sheet prepared under companies act 1956

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Guest (Expert)

24 August 2009 Dear Neeta

The same should be disclosed under Secured Loans>>Loans and Advance from Banks.

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CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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24 August 2009 agree with expert

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Guest

Guest (Expert)

24 August 2009 Thanks Suresh

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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25 August 2009 The same should be disclosed under SL also it can be under current liabilities. i tell you the circumstances where it can be CL

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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25 August 2009 Short term debt are current liabilities. This means any debt that is due within one year.
If Cash in Bank has a negative balance then it is no longer an asset. It is a liability and it is a current liability

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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25 August 2009 well as other said bank OD is shown on the liability side of
the balance sheet,i will say the same.
but we should first know that what is OD.Basically bank OD
is the facility given by the banks to withdraw more money
from the respective a/c then it posses,suppose a company has
a sum of rupees 2 lakh in its a/c but it withdraw Rs 3lakh,
it means that the bank has given loan of Rs 1lakh, which the
company as to pay back.
we all know that loan is the liability for the company so
the bank OD will be shown on the liability side, under the
head current liability and provision

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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25 August 2009 OD can be shown under Secured Loan as generally they are secured against Book Debts !! :)

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