What are liabilities and where do you need to account for them?

They show up on your Balance Sheet and are the amounts owed to creditors for past transactions.
Current Liabilities are things that are usually paid off within a year. Examples would be payroll liabilities, accounts payables, line of credit, short team loan, sales tax payables, and income tax payables.
Long-term liabilities are for financial obligations that are for more than a year. These would include mortgages, security deposits (yep, they go here and not in income!) vehicle loans or any other loan that goes over a multiyear period.
Each loan should have its own account so that you can track the amount paid against the balance due. And any interest paid should go in an expense account to track the cost of the loan.