Liabilities refer to the debts which may include unpaid credit card bills, loans, or mortgages. Having a liability is having legal responsibility to pay your dues. In books of accounts, liabilities are depicted on the right and assets on the left. They refer to all things that you have borrowed and thus owe. For instance, if you have taken a loan of ₹10,000 but have repaid ₹4,000, your liability is ₹6,000 and will be shown in the liabilities section under a balance sheet.
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