The various types of liabilities are given below:
Fixed liability:
The liability which is to be paid of at the time of dissolution of firm is called fixed liability. Examples are Capital, Reserve and Surplus.
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Long-term liability:
The liability which is not payable within the next accounting period is called long-term liability. Examples are Debentures of a company, Mortgage Loan etc.
Current liability:
The liability which is to be paid of in the next accounting period is current liability.. Examples: Sundry, creditors, Bills Payable and Bank overdraft etc.
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Trade liability:
Liability which is incurred for goods and services supplied or expenses incurred is called trade liability. Example; Bill payable and Sundry period.
Financial liability:
Liability which is incurred for financial purposes is called financial liability. Example: Bank overdraft, load taken for a short period.
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Contingent liability:
A contingent liability is one which is not an actual liability but which will become an actual one on the happening of some event which is uncertain. Examples: Bills discounted before maturity, Liability of a case pending in the court.