Current and non current liabilities both are the parts of total liabilities of business. Both are shown in the liability side of balance sheet. Current liabilities are paid within one financial year or beginning of second financial year. Non current liabilities are taken for long period. These liabilities are not settled within one financial year. Now we explain the examples of Current and Non current liabilities.
Current Liabilities Examples
1. Account Payables or Sundry Creditors
If company bought the goods on credit, company has to pay the party. So, payable amount to that creditor is the part of our current liability. Through cash or other current liabilities, we can pay our account payable.
2. Bill Payable
Bill payable is also current- liability of company. Amount which is shown in the bill will be payable on the maturity date of bill.
3. Outstanding Expenses
All outstanding expenses are the part of current liabilities. In these, we can include outstanding salary, outstanding interest, outstanding rent and other outstanding expenses. Before paying these outstanding expenses, we will show it in total current liabilities.
4. Advance Incomes
Because we have received advance before giving the service, so advance income is also our current liability. For example, we did not provide tuition service but we got tuition fees. So, tuition fees which we have received in advance will be our current liability. We have to return this money if the customer does not take our tuition service.
5. Short Term Bank Loan
In short term bank loan, we can include bank overdraft and credit card payments.
6. Other Short Term Loans
If businessman takes short term loan from other party, this will be the part of current liabilities. Actually, this is taken for settling the past current liabilities.
7. Tax Liabilities
All tax liabilities of company will be current liabilities.
8. Provisions
All provisions for loss of current assets will be the part of our current liabilities. For example, there is 10% provision of doubtful debt on the Debtor is the part of current liabilities.
Non current Liabilities Examples
1. Long- Term Bank Loan
When a company takes long term bank loan for buying his infrastructure, it will be the part of non-current liabilities. For example, ABC company takes $ 120000 loan from XYZ bank for 10 years on the security of his factory plant. This bank loan of $ 120000 will be the part of non-current liabilities.
2. Long Term Other Loan
All other secured and unsecured long term loan which will be taken, will be the part of non-current liabilities. For example, Google took long term debt of 2,986 Millions Dollars in Dec. 2011. See reference at here.
3. Bonds and Debentures
Bonds and debentures are also long term liabilities. These are the long term loan but company makes bonds and debentures as their products for getting loan money more fastly. Company gives interest on bonds and debentures.
4. Long Term Lease Obligations
Long term lease obligations are also part of non current liabilities. In capital lease, company buys the asset by giving rent. After the last installment, company will get the right on the asset which it has taken on lease.
5. Liabilities Relating to Employees' Fund
There are lots of deductions which is deducted by company. Company collects this money and transfer to different employees' welfare funds. For example, pension funds, employees' state insurance fund, employees' provident fund. So, all are the liabilities of company.
6. Fixed Deposits of Customers of Customers
If bank gets money from customers in the form of FD for more than one year, it will be the non current liability of bank
Current Liabilities Examples
1. Account Payables or Sundry Creditors
If company bought the goods on credit, company has to pay the party. So, payable amount to that creditor is the part of our current liability. Through cash or other current liabilities, we can pay our account payable.
2. Bill Payable
Bill payable is also current- liability of company. Amount which is shown in the bill will be payable on the maturity date of bill.
3. Outstanding Expenses
All outstanding expenses are the part of current liabilities. In these, we can include outstanding salary, outstanding interest, outstanding rent and other outstanding expenses. Before paying these outstanding expenses, we will show it in total current liabilities.
4. Advance Incomes
Because we have received advance before giving the service, so advance income is also our current liability. For example, we did not provide tuition service but we got tuition fees. So, tuition fees which we have received in advance will be our current liability. We have to return this money if the customer does not take our tuition service.
5. Short Term Bank Loan
In short term bank loan, we can include bank overdraft and credit card payments.
6. Other Short Term Loans
If businessman takes short term loan from other party, this will be the part of current liabilities. Actually, this is taken for settling the past current liabilities.
7. Tax Liabilities
All tax liabilities of company will be current liabilities.
8. Provisions
All provisions for loss of current assets will be the part of our current liabilities. For example, there is 10% provision of doubtful debt on the Debtor is the part of current liabilities.
Non current Liabilities Examples
1. Long- Term Bank Loan
When a company takes long term bank loan for buying his infrastructure, it will be the part of non-current liabilities. For example, ABC company takes $ 120000 loan from XYZ bank for 10 years on the security of his factory plant. This bank loan of $ 120000 will be the part of non-current liabilities.
2. Long Term Other Loan
All other secured and unsecured long term loan which will be taken, will be the part of non-current liabilities. For example, Google took long term debt of 2,986 Millions Dollars in Dec. 2011. See reference at here.
3. Bonds and Debentures
Bonds and debentures are also long term liabilities. These are the long term loan but company makes bonds and debentures as their products for getting loan money more fastly. Company gives interest on bonds and debentures.
4. Long Term Lease Obligations
Long term lease obligations are also part of non current liabilities. In capital lease, company buys the asset by giving rent. After the last installment, company will get the right on the asset which it has taken on lease.
5. Liabilities Relating to Employees' Fund
There are lots of deductions which is deducted by company. Company collects this money and transfer to different employees' welfare funds. For example, pension funds, employees' state insurance fund, employees' provident fund. So, all are the liabilities of company.
6. Fixed Deposits of Customers of Customers
If bank gets money from customers in the form of FD for more than one year, it will be the non current liability of bank
