[Solved] Long Term Borrowings in Balance sheet Example

 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

• 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

Assets		Liabilities and Equity
Current Assets:		Current Liabilities:
Cash	200,000	Accounts Payable	80,000
Accounts Receivable	150,000	Short-term Debt	$50,000
Inventory	120,000	Accrued Expenses	30,000
Total Current Assets	470,000	Total Current Liabilities	160,000
Fixed Assets:		Long-term Debt:
Property, Plant & Equipment	600,000	Long-term Loans	400,000
Less: Accumulated Depreciation	(100,000)
Net Fixed Assets	500,000	Total Long-term Debt	400,000
Intangible Assets:
Goodwill	80,000
Intellectual Property	70,000
Total Intangible Assets	150,000
Total Assets	1,120,000	Total Liabilities	560,000
Equity:
Common Stock	300,000
Retained Earnings	260,000
Total Equity	560,000
Total Liabilities and Equity	1,120,000

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

Conclusion

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