Discover Accounting Definitions II

In the Previous post we discussed just one section the balance sheet consist of but I think as long as the balance sheet
was configured we have time to discuss all of it .
we will continue our discovering start with the other section called liabilities as shown here :

- Owner's equity :
Simply Owner's equity comes in a lot figures we summarize it in :

* Capital : Usually we called the amount given in shape of money or other assets capital
* Shares : Another form of Capital was given by the owners of the company in some Company's types like (joint-stock company)
those are shareholders this shares invested by them
* Reserves : Amount remained in the business and not distributed to the owners

- Long-term liability :
Amount owed to some one else which are payable after the specific period include :

* Long term loans .
* Debentures : It's like the long term loans but secured when the business fails to repay back the loans the Fixed Assets of the business will be in risk

- Current Liability :
Amount which details the debts that a business must repay during the current year include :

* Creditors : Amount owed to other persons so-called suppliers .
* Accrual : the name we gave it to the amount still owed in the end of Accounting period .
* Proposed Items : special item for the coming period .
* Payable Items : like taxation payable for the coming period .
* Overdraft : amount owed to the bank so-called payable interest .
* Short loans .

- Provision : it's the amount equals with depreciation or can be subtracted from Fixed Assets

After all this points we discussed . urgent point have to be said .

- Net Current Assets :
The difference between current assets and current liabilities refer to it as working Capital (which finances the business of company)

- Net Assets :
The difference between total assets and total liabilities its result have to be ZERO to achieve the General Equalization we discussed

those two points did not appear in the balance sheet we just calculate them to illustrate the balance .

Best hopes ,
Mostafa