Long term liabilities

Long term notes payable

As we can see here, in promissory notes payable, it has principal payment 20 000 rupee and 6,5 % interest rate.

There is only difference between the current promissory notes and long term promissory notes. If the payment due time is more than 1 year, it is called long term notes payable. If it is within one year, it is current notes payable.

Example of notes payable

Definition of long-term liabilities

Long term liabilities are liabilities which a business needs to pay after a year or more.

These liabilities are reported in the long-term liability section of the balance sheet.

Types of long-term liabilities:

* Notes payable

* Bonds payable

* Mortgages payable

* Other long term loans

Definition of long-term liabilities

Accounting class

Long-term notes payable

• Long-term notes payable – an agreement a company will make with another one, which includes a formal written promise to pay predetermined amount of money on particular dates.
• Let’s look at an example:

Long-term notes payable