Current Liabilities Account form: options and information

Current liabilities are obligations of your company that are expected to come due for payment within the normal operating cycle of your business. Examples of current liabilities include accounts payables, notes, accrued expenses, unearned revenue (customer deposits) or the current portion of long-term debt. Even though accounts payable is a current liability, you do not have to set up an Accounts Payable account. When you create a company, Microsoft Office Accounting 2009 creates a system account named Accounts Payable.

Open the form

To open the Current Liability Account form, click New Account on the Company menu. In the Select Account Type dialog box, select Current Liability.

Form options

The form contains the following options.



Account type

The default nominal account type is Current Liability. This field cannot be edited.

Nominal code

(Required.) This field appears if you select Use nominal codes in the Preferences dialog box. Type a number in accordance with your company's Chart of Accounts structure. It is a good practice to number the same types of accounts together. For example, all nominal codes for Asset accounts could start with a 1, all Liability accounts could start with a 2, all Equity accounts could start with a 3 and so on. You can change the nominal code by editing the account record.

Account name

(Required.) Type a name for the account that describes the type of current liability you are tracking.


By default, the Active check box is selected, and the status is Active. You can make the account inactive by clearing the Active check box. An account with Inactive status does not appear in lists in dialog boxes, forms or wizards. You can make an account active again by opening the account record and selecting the Active check box.

Subaccount of

You can create subaccounts to separate a broad category into smaller, specific categories. Creating subaccounts can make a Balance Sheet report easier to understand and the results easier to analyse. For example, you could create subaccounts that describe the different unearned revenue for your company by entering a name for the subaccount in the Nominal name field and then selecting Unearned Revenue in the Subaccount of field. To designate an account as a subaccount, click the Subaccount of arrow and select a parent or main account. You can create up to five levels of subaccounts under a parent account. For example, you could have an account Wages and then create subaccounts under it named Sales, Admin and Factory. You can then create another level of subaccounts named East, West, North and South under each of the first level of subaccounts.

Note: A subaccount must be the same nominal account type as the parent account.


(Read-only.) Displays the hierarchy of an account from a parent account through all the levels of subaccounts under it. For example, a Medical account that is a subaccount of Insurance would be displayed as Insurance>Medical.

Cash Flow category

Click the Cash Flow category arrow to identify the cash flow identity of this account as either Operating, Investing or Financing. The Cash Flow Statement report separates your cash activity into categories that describe your operating, investing and financing activities. By selecting the proper category when you create an account, you ensure that the account activity is properly reflected in the statement. If you are uncertain about the category, open an account of the same type from the Chart of Accounts and note how it is categorised. If you select one of the default accounts in the Chart of Accounts supplied by Accounting 2009 when you are creating a company, the proper category appears by default.


The opening balance shows £0.00 by default. You can type an account beginning balance in the Balance field if you are creating the account to bring over balances from another system. When you enter the opening balance, you create the opening balance in the nominal activity for the account.

As of

Shows the company start date selected in the Company Setup Wizard. To change the date, type the starting date for the account opening balance or click the As of arrow to open the calendar. You can enter a date prior to the start date that you selected in the Company Setup Wizard. If you do so, a message appears that gives you the option to allow Accounting 2009 to automatically create all financial years necessary to include the entered date.

Account VAT code

Shows the information entered on a product and service record that indicates whether the item requires VAT or is exempt (E). To change an item's VAT status, click the Account VAT code arrow and select the appropriate VAT code, or click Add a new VAT Code to add a new VAT code.


Type any additional information about the account that you are creating. This field is only for your internal informational purposes, and you can view it only by opening the account record.

Additional tasks

You can perform the following tasks by using the Actions menu.

Actions menu



New Account

To add an account, click New Account.

New Journal Entry

To enter a new journal entry, click New Journal Entry.

Open Nominal Activity

To open the nominal activity for the record you are in, click Open Nominal Activity.

Transaction History

Click Transaction History to open the Transaction Detail by Account report for the account record you are in. This report shows all transactions for the account since it was created.

Audit Trail

Click Audit Trail to open the Audit Trail report for the accounting record you are in. This report shows all the journal entries for the account since it was created if it was a new account created during the current financial year or from the start of the current financial year if it is a running account.

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