Report of Warwickshire College - Essay Example

ed for fashion, sport, beauty, hair and sport and after this, in the year 2007 the college merged with Pershore College in Worcestershire which is known as famous Centre of Horticulture Excellence (Warwickshire College, 2014). Liabilities can be defined as the obligations or legal debts which arise during the time of operation of the business. Liabilities can be paid off by money and goods or services. Liabilities include mortgages, both short and long term loans, accrued expenses, deferred revenues and accounts payable.

These are important aspect of a business organization as they have an impact on the financial performance of the business. Generally current liabilities are those which are payable in one year and long term liabilities are those which can be paid over years (Holgate, 2006, pp. 122-123). Current Liabilities of the college will include Bank loans of 1000000 pounds, loans from other sources 44000 pounds, creditors of 2278000 pounds, Accruals of 1604000 pounds, unpaid VAT of 63000 pounds, payments that are received in advance of 683000 pounds and 1519000 pounds is to be paid to the skills funding agency.

Long term liabilities include bank loans of 17000000 pounds, unpaid VAT of 184 ponds and loans from other sources of 24000 pounds (Warwickshire College, 2013, p. 40). Record keeping is also known as record management which is professional process to get easy and quick access and step by step guidance to access the confidential and archived records which may provide sensitive and personal records about the college. Record management process includes identifying, categorizing, selecting, storing, protecting, archiving, conserving, maintaining and demolishing the records.

Record keeping is an important step for start up of Warwickshire College because management of records related to VAT and Tax liabilities will be helpful for the management to track the liabilities in future. The college is comes under Schedule 6of Finance Act 2010 and the college