The liability categories of new accounting items are as follows:

Short-term borrowings

The funds required by the enterprise to maintain normal production and operations or as offset items Various loans borrowed from external entities such as banks or other financial institutions with a repayment period of one year or more than one year within an operating cycle.

The short-term borrowings of industrial and commercial enterprises mainly include: operating turnover borrowings, temporary borrowings, settlement borrowings, bill discount borrowings, seller's credit, pre-purchase deposit borrowings and special reserve borrowings, etc.

Bills payable

Bills payable refer to the commercial bill settlement method that occurs when an enterprise purchases and sells goods and settles project prices. The bill is issued by the drawer and the payment is entrusted. A bill in which a person unconditionally pays a determined amount to the payee or bearer on a specified date, including commercial acceptance bills and bank acceptance bills. Notes payable are divided into two types: interest-bearing notes payable and non-interest-bearing notes payable.

Accounts payable

This account accounts for the amount of money the company should pay to the purchasing unit for selling goods, materials, providing services, etc., as well as advance transportation and miscellaneous expenses and acceptance due Commercial acceptance bills that cannot be paid.

Accounts received in advance

Accounts received in advance is a liability arising from an agreement between the buyer and the seller, whereby the buyer pays a portion of the loan to the supplier in advance.

The accounting of advances from accounts should depend on the specific circumstances of the enterprise. If there are many accounts received in advance, you can set up the "Accounts Receivable" account; if there are not many accounts received in advance, you don't need to set up the "Accounts Receivable" account and directly credit the "Accounts Receivable" account. If the "accounts received in advance" account is set up separately for accounting, the credit side of the "accounts received in advance" account reflects the payment received in advance and the payment for goods repaid; the debit side reflects the payment receivable and the return of overpaid payment; the credit balance at the end of the period reflects the payment yet to be made. The closed debit balance of advances from receivables reflects the amounts receivable.