An
order in which assets and liabilities are presented on the balance sheet is
known as marshalling.
Marshalling of record
>> July 23, 2010
Marshalling of record is to point out assets and liabilities in specific order or arrangement. we will either show assets and liabilities in liquidity order or duration order.
1. Liquidity Order
Under this method, we tend to show all those assets 1st in record which will be liquidated at intervals terribly short time. After this, we tend to show mounted assets that square measure used for business not purchasable. within the liability aspect we tend to show current liabilities 1st which can result at intervals terribly short time and so we tend to show mounted liabilities like future loan, reserves and capital.
>> July 23, 2010
Marshalling of record is to point out assets and liabilities in specific order or arrangement. we will either show assets and liabilities in liquidity order or duration order.
1. Liquidity Order
Under this method, we tend to show all those assets 1st in record which will be liquidated at intervals terribly short time. After this, we tend to show mounted assets that square measure used for business not purchasable. within the liability aspect we tend to show current liabilities 1st which can result at intervals terribly short time and so we tend to show mounted liabilities like future loan, reserves and capital.
2. Permanence Order
This is the second system during which we tend to show the assets and liabilities on basis of duration. we tend to show mounted assets and glued liability before showing current assets and current liabilities during this system.
This is the second system during which we tend to show the assets and liabilities on basis of duration. we tend to show mounted assets and glued liability before showing current assets and current liabilities during this system.
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ReplyDeleteAudit firms in UAE
Accbooks is a UAE registered Accounting & Bookkeeping firm providing cost-effective value-added solutions to meet all your business needs under one roof. We follow the highest level of professional ethics and quality in our services.
ReplyDeleteAudit firms in UAE
Accbooks is a UAE registered Accounting & Bookkeeping firm providing cost-effective value-added solutions to meet all your business needs under one roof. We follow the highest level of professional ethics and quality in our services.