Accounts Payable, after deducting debit balances in suppliers' accounts amounting to 100,000 ----------- 4,000,000 What amount should be reported as current liabilities at year-end? Answer is 4,100,000 Question: why do we include 100,000 as a liability?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Accounts Payable, after deducting debit balances in suppliers' accounts amounting to 100,000 ----------- 4,000,000
What amount should be reported as current liabilities at year-end?
Answer is 4,100,000
Question: why do we include 100,000 as a liability?
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