Loans from individuals are classified as current liabilities. This is because they are expected to be repaid within one year. Loans from individuals are usually used to finance short-term needs, such as working capital or seasonal fluctuations in sales. They can also be used to finance long-term needs, such as the purchase of equipment or the expansion of a business. However, because they are expected to be repaid within one year, they are classified as current liabilities.
Fixed liabilities are liabilities that are not expected to be repaid within one year. They include long-term debt, such as bonds and mortgages, and deferred income taxes. Loans and advances are liabilities that are not due within one year but are not expected to be repaid within the next five years. They include loans from banks and other financial institutions, as well as advances from customers and suppliers. Capital is the equity of a business. It is the difference between the assets of a business and its liabilities.
In conclusion, loans from individuals are classified as current liabilities because they are expected to be repaid within one year.