A current liability in accounting is generally a debt that is expected to be paid off within a year. Long-term liabilities are those debts that mature in a period longer than one year. The term can also refer to a debt that cannot be paid with current assets. Both current debts and long-term debts are recorded on a company's balance sheet. When preparing a balance sheet, adhere to the basic standards set forth by generally accepted accounting principles to record your financial data.
Add up the long-term debt's principal payments due each month for the fiscal year.
Deduct the amount you calculated in Step 1 from the debt's total balance and then enter that amount in the current liabilities field of the balance sheet.
Enter the remaining long-term debt balance into the long-term liabilities field of the balance sheet.
