Quote:
Originally Posted by KinzaShoaib
Is this necessary to categorized Balance sheet's Assets and Liabilities in Current and fixed?? If yes, then Provision for Tax, Proposed Dividend, Unclaimed Dividend, Reserve for depreciation are current or long term liabilities??
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Kindza, I have been told that Assets and liabilities should be classified. Provision for tax is a profit and loss item if it is not a partnership. In case of partnership, Tax is deducted from Capital. All kinds of dividends are directly deducted from Capital a/c. Reserve for depreciation is long term liability. However, accumulated depreciation can be written as current liability.