Current Assets and Current Liabilities in Tally Prime

           

Current Liabilities and Current Assets

                                            

 Current Assets

 

Current assets are items of value that a company expects to convert into cash within one

 year. The most common types of current assets include cash, accounts receivable,

 inventory, and prepaid expenses. These assets are important because they can be used to

 pay off short-term debts and other obligations.

 

Example -

Cash and deposits

Account Receivables (Debtors)

Short Term Investment

Short Term Loan & Advance

Pre Paid Exp.

Insurance, Contractors

Inventory (Stock)

Raw Material

Work In Progress  

Finished Goods

 

                            Current Liabilities

 

Current liabilities are debts that must be paid within one year. The most common types of

 current liabilities include accounts payable, short-term loans, and accrued expenses.

 These liabilities are important because they need to be paid off in a timely manner in

 order to avoid default.

 

 Examples-

Accounts Payable

 Payroll Due

 Payroll Taxes  

Accrued Expenses  

Short-Term Notes Payable  

Income Taxes  

Interest Payable  

Accrued Interest  

Utilities

 Rental Fees

 Short-Term Debts.