Welcome back to our blog today we will talk about the long-term borrowings in the balance sheet with examples so if you are an accounting student then you should read this spot till the end.

What are the borrowings in the balance sheet?

Borrowings on the balance sheet represent the funds acquired by the company through various long or short-term debt instruments, such as bank loans, bonds, mortgages, or debentures.

Now let's start our post with the long-term borrowings example:

long term borrowings example

Talk about Some common terms that fall under long-term borrowings include:

long term borrowings example
long term borrowings example

  • Bonds
  • Bank Loans
  • Mortgages
  • Debentures
  • Convertible Debt
  • Long-term Notes Payable
  • Long-term Finance Leases

Now let's move to the example:

LongTerm Borrowings In The Balance Sheet

AssetsLiabilities and Equity
Current Assets:Current Liabilities:
Cash200,000Accounts Payable80,000
Accounts Receivable150,000Short-term Debt$50,000
Inventory120,000Accrued Expenses30,000
Total Current Assets470,000Total Current Liabilities160,000
Fixed Assets:Long-term Debt:
Property, Plant & Equipment600,000Long-term Loans400,000
Less: Accumulated Depreciation(100,000)
Net Fixed Assets500,000Total Long-term Debt400,000
Intangible Assets:
Intellectual Property70,000
Total Intangible Assets150,000
Total Assets1,120,000Total Liabilities560,000
Common Stock300,000
Retained Earnings260,000
Total Equity560,000
Total Liabilities and Equity1,120,000

In this given balance sheet long-term borrowings are 400,000.


I hope you guys understand about borrowings in the balance sheet and learn how to record borrowings in balance sheet with proper manner.