[jbk2000]

Hi I'm having trouble going over a few past papers about whether each of these goes under liability or asset and which asset and liability it comes under. This is what I have come up with but I am not sure whether it is correct, could someone please tell me if I have made any mistakes thanks.

Cash at bank - Current Asset
Debtors - Current Asset
Freehold premises - Fixed asset
Debentures - Long term liability
Plant and machinery - Fixed asset
Goodwill - Intangible asset - fixed asset
Stock - Current asset
Trade creditors - Current liability
Ordinary shares - Current liability
Bank overdraft - Long term liability

Also intangible assets come under fixed assets, does tangible also come under fixed or current?

[morgaine300]

All but three are correct. Well, two and a half. Goodwill is an intangible asset not a fixed asset. A fixed asset has to be tangible. Goodwill isn't a "thing" you can touch.

Ordinary shares is equity. However, companies can also purchase shares in other companies so that it can be an investment. But I would think that would be called "investment" and not "ordinary shares." Are asset and liability your only choices? (You are from somewhere besides where I'm from and the vocabulary can be different. But either way, it's not a liability. The company doesn't owe anyone anything.)

Bank Overdraft is a current liability. You bounced a check and owe that money back to the back, but presumably you're planning on taking care of it inside a year, right? :D Makes it current.