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    Accounting PPT.: University of Gujrat (Uog)

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    Desi Boys
    This document contains a presentation on accounting liabilities for an organization. It discusses the nature of liabilities, current liabilities, non-current liabilities, contingent liabilities, accounts payable, notes payable, interest payable, and how to calculate simple and compound interest. The presentation was submitted to Sir Yasir Nadeem by a group of students including Farhan Riaz, Shafique Zaman, Moiz Sha, and Simab Ahmed.

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    © All Rights Reserved
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    Accounting PPT.: University of Gujrat (Uog)

    Uploaded by

    Desi Boys
    58 views5 pages
    This document contains a presentation on accounting liabilities for an organization. It discusses the nature of liabilities, current liabilities, non-current liabilities, contingent liabilities, accounts payable, notes payable, interest payable, and how to calculate simple and compound interest. The presentation was submitted to Sir Yasir Nadeem by a group of students including Farhan Riaz, Shafique Zaman, Moiz Sha, and Simab Ahmed.

    Original Description:

    Accounting Presentation

    Original Title

    Accounting PPt.(section IT-19-C)

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    This document contains a presentation on accounting liabilities for an organization. It discusses the nature of liabilities, current liabilities, non-current liabilities, contingent liabilities, accounts payable, notes payable, interest payable, and how to calculate simple and compound interest. The presentation was submitted to Sir Yasir Nadeem by a group of students including Farhan Riaz, Shafique Zaman, Moiz Sha, and Simab Ahmed.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    58 views5 pages

    Accounting PPT.: University of Gujrat (Uog)

    Uploaded by

    Desi Boys
    This document contains a presentation on accounting liabilities for an organization. It discusses the nature of liabilities, current liabilities, non-current liabilities, contingent liabilities, accounts payable, notes payable, interest payable, and how to calculate simple and compound interest. The presentation was submitted to Sir Yasir Nadeem by a group of students including Farhan Riaz, Shafique Zaman, Moiz Sha, and Simab Ahmed.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 5

    University Of Gujrat(uog)

    Accounting ppt.

    Submitted to:

    Sir, Yasir Nadeem

    Group Member:

    FARHAN RIAZ 19811556-028


    SHAFIQUE ZAMAN 19811556-030
    MOIZ SHA 19811556-023
    SIMAB AHMED 19011556-132
    AMEER SIKANDER 19011556-104

    Content:

    Liabilties of Orgnization:
    1 The nature of :Libilties
    2 Account Payable
    3 Notes Payable
    4 Notes Payable
    5 Notes Payable with intrest charges

    Libilties Of Orgnization:

    What is nature libilties?

    A liability is something a person or company owes, usually a sum of money. Liabilities are


    settled over time through the transfer of economic benefits including money, goods, or
    services .

    Types of libilties:

    There.are three types of liabilties:

     Current liabilities
     Non current libilties
     Contingent libilties

    What is current liabilities?


    Current liabilities are a company's short-term financial obligations that are due within one
    year or within a normal operating cycle. ... An example of a current liability is money owed to
    suppliers in the form of accounts payable.

    What is non-current liabilties?

    Noncurrent liabilities, also known as long-term liabilities, are obligations listed on the


    balance sheet not due for more than a year. ... Examples of noncurrent liabilities include
    long-term loans and lease obligations, bonds payable and deferred revenue.

    What is contigent liabilities?

     A contingent liability is a liability or a potential loss that may occur in the future depending on
    the outcome of a specific event. ... In that case, the company would book that amount
    as contingent liability on its balance sheet.

    What is Account Payable?

     When a company purchases goods on credit which needs to be paid back in a short period of
    time, it is known as Accounts Payable.

    Example:

    if a business received an invoice from its cleaning materials supplier for $100, the entry would look as
    follows:

    Assets L&E
    Purchase of cleaning material of
    credit Cleaning 100.0Accounts 100.0
    Materials Payables

    Once the business has paid the creditor, the entry would be:

    Assets L&E
    Payment of invoice (100.0)Accounts
    Cash
    Payable

    What is notes payable?

    A note payable is a liability in writing that promises to pay a specific amount of money at future
    date or on demand. In other words, a note payable is a loan between two entities.

    Is Notes Payable Debit or Credit?

    Notes Payable is a liability (debt) account that normally has a credit balance. When money is
    borrowed from the bank, the accountant will debit the Cash account to reflect the increase in
    the amount of cash and credit the Notes Payable account to show the corresponding debt.
    Example:

    John borrows $100,000 from Michelle on January 1, 2017. John signs the note and
    agrees to pay Michelle $100,000 six months later (January 1 through June 30).
    Additionally, John also agrees to pay Michelle a 15% interest rate every 2 months.

    The journal entries would be as follows:

     
    Notes Payable with Intrest charges:
    The balance in Notes Payable represents the amounts that remain to be paid. Since a note
    payable will require the issuer/borrower to pay interest, the issuing company will have interest
    expense. Under the accrual method of accounting, the company will also have another liability
    account entitled Interest Payable.

    What is intrest payable?

    Interest payable is the amount of interest the company has incurred but has not yet paid
    as of the date of the balance sheet. Interest Payable is also the title of the
    current liability account that is used to record and report this amount.

    Simle Intrest Calculate:

    Example:

    The second offer that Sarah has received is to borrow a principal amount P = $2,000, at an annual rate
    of 7%, over t = 1 year. The rate r must be converted from a percentage into decimal form, which means
    that we divide the percentage value 7% by 100 to get r = 0.07.

    We now calculate the amount of interest Sarah would be charged if she accepts the loan offer just
    described:

    I = Prt = 2000*0.07*1 = $140.

    Differ between Accrued Intrest & Due intrest?


    Accrued interest  the amount of loan intrest that has already occurred but has not yet been
    paid by the borrower and not yet received by the lender.

    Due Intrest The intrest we have earn and we can take it also because its time has been
    compelled.

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