Railway Accounts Department Examinations

Tuesday, May 23, 2023

Current Liabilities - Bookkeeping


Current Liabilities - Bookkeeping 

2023 - SWR Bookkeeping - Appendix2 - 3 marks


  • Also called Short term liabilities   

  • Period: Less than a Year. (Long-term liabilities - More than a Year)

  • The difference between Current Assets and Current Liabilities is Working Capital 

  • Current Ratio = Current Assets / Current Liabilities  

  • Settled using Current Assets

  • Shows on Balance Sheet Left Side i.e., Capital & Liabilities side.  

  • Examples: Bank Loans, Dividends payable, Bills Payable, Income Tax due, Interest payable on Long term loans, Outstanding expenses, etc.