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Where does a Bond Sinking Fund appear on the Balance Sheet?

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Question added by Saji George , Finance Manager , MOUNT OF LIGHT MEDICAL COMPANY LTD
Date Posted: 2017/08/22
Saji George
by Saji George , Finance Manager , MOUNT OF LIGHT MEDICAL COMPANY LTD

A Bond Sinking Fund appear immediately after the Current Assets. The bond sinking fund is the part of the long term asset usually has the heading Investment. 

The bond sinking fund is a long-term (non-current) asset even if the fund contain only cash. The reason is the cash in the fund must be used to retire bonds, the money in the bond sinking fund cannot be used to pay current liabilities. 

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