Current Liabilities

Current Liabilities groups everything the company must pay within twelve months: supplier bills, short-term loans and overdrafts, the current slice of leases, salaries due, VAT and TDS owed to the IRD, income tax for the year and short-term provisions. It posts nothing itself; the Balance Sheet adds up the ledgers beneath it. The figure is the one most watched by lenders and by the owner, because Current Assets less Current Liabilities is the working capital available to run the next month. In the demo books the total is Rs 1,44,160: the two unpaid Market mind investment group bills in Creditors and the VAT still owed. A creditor or tax balance left under a non-current group hides money due soon.

Current Liabilities = Trade and other payables + Duties and Taxes + short-term loans, leases, employee dues, tax and provisions

1. 01Go to Accounts Setup > Chart of Accounts, expand Liabilities, then Current Liabilities.
2. 02Open Creditors or VAT Payable beneath it to read the ledger behind any balance.
3. 03Open Financial Reports > Balance Sheet, set the period, and read the group total.
4. 04Compare it with Current Assets to judge working capital.
5. 05Open Financial Reports > Accounts Payable to see which suppliers make up the Creditors part.

Do not post here. Pick Creditors, VAT Payable, TDS Payable or another child account on your document.

Current Liabilities in the demo books are Rs 1,44,160: Creditors Rs 1,40,000 plus VAT Payable Rs 4,160.