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Total liabilities are a company's total debts and financial obligations, including short-term and long-term debts, accounts payable, and other liabilities.
Total liabilities refer to the sum of all financial obligations or debts that a company has to external parties, including current and non-current liabilities. These may include loans, trade payables and other obligations that the company has to settle in the future.
Example of Total Liabilities:
Let’s say a company has the following liabilities:
Total Liabilities would be:
Total Liabilities = 20,00,000 + 15,00,000 + 1,00,00,000 + 10,00,000 = Rs 1,45,00,000
So, the company’s Total Liabilities would be Rs 1,45,00,000. This represents the total amount the company owes to external creditors and other parties.
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