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Arrange the following items in the order of liquidity.a) Long term loans b)Bank overdraftc) Capital d)Debentures e)Creditorsf) Bills payable |
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Answer» Assets and liabilities are to be shown in the balance sheet in an order. There are two WAYS of showing the items of assets & liabilities i.e. Order of permanency and order of liquidity. This is also called as marshaling of balance sheet. ACCORDINGLY , items to be shown as : SHARE Capital Bank Loan Bank Overdarft Provision for Taxation. |
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