Liabilities

Liabilities is the root group on the liability side of the Balance Sheet. It is a heading, not a ledger: BRAccount refuses any voucher that names a group account, so every bill, loan and tax posting lands on a ledger beneath it and the group simply shows the sum. Under it sit Non-Current Liabilities, due after twelve months, and Current Liabilities, due within the year. A Nepali business reads this total against Assets and Equity to confirm the books balance and to see how much of the company is financed by outsiders. If a ledger is created directly under the root instead of under the right sub-group, the current and long-term split that banks and auditors ask for is lost.

Liabilities = Non-Current Liabilities + Current Liabilities = Assets - Equity

1. 01Go to Accounts Setup > Chart of Accounts and expand Liabilities.
2. 02Click a child group to see its own children; click a ledger to open its General Ledger.
3. 03To add a new liability ledger, select the right sub-group and click Add Child.
4. 04Open Financial Reports > Balance Sheet for the period to see the group total.
5. 05Compare the total with Assets less Equity; they must agree.

Never post here. Choose a ledger account beneath it, such as Creditors or VAT Payable, on your Purchase Invoice or Payment Entry.

Yatra For Fun's Liabilities total Rs 1,44,160: Creditors Rs 1,40,000 for the two unpaid bills plus VAT Payable Rs 4,160.