Term loans & other medium /long-term loans come under-group..?

current liability

any loan taken from out side for the running of business or to be called as current liabilityes as they have to be paid back with interest to the bank

In this Term Loan /and other medium long term loans comes under LOANS AND ADVANCES

Under loans & advances group the term loans & other medium/long term loans come.

Dear Manseer,

Loans with respect to duration can be classified as Long Term / Short TermLoan.

Long Term Loans (LTL) - Basically period more than 12 months.

Short Term Loans (STL)- Period Less than 12 months.

If it is a "Short Term Loan" then you will simply classify as Current Liability (CL).

For Example: If you have taken an Overdraft Facility of CU 1,000,000 - Then it should be classified as STL and show it under CL as Overdraft Facility is generally for a period less than 12 months.

If it is a "Long Term Loan" then you will simply classify as Secured Loans (SL).

For Example: If you have taken a Term Loan Facility of CU 1,000,000 - Then it should be classified as LTL and show it under Sec. L as Term Facility is generally for a period more than 12 months.

Please note; In the case of LTL, amount/Instalment due in immediately next Financial year, the same to be shown under the head CL. As the same is payable within period of 12 moths

For Example: If you have taken a Term Loan Facility of CU 1,000,000 - And the first instalment due is 100,000. Then, in this case, the reporting will be as under;

LTL                 -   900,000    -  Report as LTL - As the same is NOT due within immediately 12 months.

STL                -   100,000    -  Report as STL - As the same is due within immediately 12 months. 

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Total Loan      -  1000,000   - Actual Borrowing amount.

Hope you are satisfied with the answer.

Thanks.