Should the bank overdraft be included in current liabilities? Post category:Accountancy Reading time:1 mins read SOLUTION Yes, it should be treated as a current liability because this facility is granted by bank for a period of one year or less and it has to be renewed at the end of period allowed by bank. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy prepaid expenses are not considered as liquid assets? Next PostThe current ratio of a company is 2: I. Stale giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. (C.B.S.E. 2020. Delhi) You Might Also Like What is indicated by High Inventory Turnover Ratio? October 3, 2022 If a fixed amount is withdrawn on the first day of every month, for what period the interest on total drawings will be calculated? September 23, 2022 Madan and Gopal are partners sharing profits in the ratio of 3 : 2. They admit Sooraj for 1/3rd share in profits on 1st April, 2019. They also decide to share future profits equally. Goodwill of the firm was valued at Rs. 5,50,000. Goodwill existed in the books of account at Rs. 1,00,000, which the partners decide to carry forward. Sooraj is unable to bring his share of goodwill. Pass the necessary Journal entries on admission of Sooraj, if: (a) Goodwill is not to be raised and written off; and (b) Goodwill is to be raised and written off. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
If a fixed amount is withdrawn on the first day of every month, for what period the interest on total drawings will be calculated? September 23, 2022
Madan and Gopal are partners sharing profits in the ratio of 3 : 2. They admit Sooraj for 1/3rd share in profits on 1st April, 2019. They also decide to share future profits equally. Goodwill of the firm was valued at Rs. 5,50,000. Goodwill existed in the books of account at Rs. 1,00,000, which the partners decide to carry forward. Sooraj is unable to bring his share of goodwill. Pass the necessary Journal entries on admission of Sooraj, if: (a) Goodwill is not to be raised and written off; and (b) Goodwill is to be raised and written off. August 1, 2022