Current Assets

Current Assets, numbered 1200, is the group for everything that will turn into cash or be used up within twelve months. It totals Inventories, Trade and other receivables, Current Tax Assets, Indirect Tax Assets such as VAT Receivable, Financial Assets - Current, Cash and cash equivalents, Non-current Assets Held for Sale and Reinsurance Contract Assets. Lenders compare this total with Current Liabilities to see whether the business can pay its way over the coming year; a ratio comfortably above one is what they look for. In the demo books it carries cash and bank of Rs 25,68,160 and opening stock of Rs 4,50,000. Everything posts to the ledgers beneath it, never to the group.

Current Assets = Inventories + Receivables + Tax assets + Short-term Investments + Cash and cash equivalents + Held for Sale; Current ratio = Current Assets / Current Liabilities.

1. 01Go to Accounts Setup > Chart of Accounts and expand Assets > Current Assets.
2. 02Read the sub-groups and ledgers beneath it; each one holds something expected to become cash within a year.
3. 03Open Financial Reports > Balance Sheet; compare the Current Assets subtotal with Current Liabilities.
4. 04Open Financial Reports > Trial Balance to see every child with its debit balance.
5. 05On any document, choose a child ledger such as Cash, Debtors or Stock In Hand, never Current Assets.

Do not post here. Pick Cash, a bank account, Debtors or Stock In Hand on your document.

Yatra For Fun's Current Assets include cash and bank Rs 25,68,160 and opening stock Rs 4,50,000.