Accounting treatment of long term borrowings Accounting treatment of short term borrowings

The accounting entries for long-term borrowings are:

Borrow: Bank deposit.

Credit: Long-term borrowing.

In order to reflect the various long-term borrowings of enterprises, a "long-term borrowing" account should be set up to account for the borrowing, accrued interest, repayment and balance of various long-term borrowings. The account is classified as a liability, and its lender registers the borrowed money and the estimated interest payable.

the amount of principal and interest payments registered by the debit; The closing balance is on the credit side and represents the amount of principal and interest of long-term borrowings that have not yet been repaid. The account should be set up according to the loan unit, and the detailed accounting should be carried out according to the type of loan.

This account accounts for the loans borrowed by enterprises from banks or other financial institutions with a term of more than one year (excluding one year).

This subject should be accounted for in detail according to the lending unit and the type of loan, respectively "principal", "premium and discount", "transaction cost", etc.

The main accounting treatment of long-term borrowings.

1. Enterprises borrow long-term loans.

The "Bank Deposits" account is debited, the account (principal) is credited, the transaction costs incurred, the account is debited - interest adjustment, and the account is credited or debited (premium) by its difference.

2. Balance sheet date.

The interest expense of the long-term borrowings determined shall be calculated at the amortized cost and the effective interest rate, and the accounts of "construction in progress", "manufacturing expenses", "financial expenses" and "R&D expenditures" shall be debited and the account "interest payable" shall be credited.

If the actual interest rate is not significantly different from the nominal interest rate agreed in the contract, the nominal interest rate agreed in the contract may also be used to calculate and determine the interest expense.

On the balance sheet date, the amount of long-term borrowing discount and transaction cost amortization calculated and determined according to the effective interest rate method shall be debited to the accounts of "construction in progress", "manufacturing expenses", "financial expenses" and "R&D expenditures", and credited to this account (premium and discount, transaction costs); Amortize the premium, do the opposite accounting entry.

3. When repaying the principal of long-term loans.

This account is debited and the Bank Deposits account is credited. At the same time, the amount of the premium and transaction cost of the long-term loan should be resold and debited to the accounts of "construction in progress", "manufacturing expenses", "financial expenses" and "R&D expenditures", and credited to this account (premium and discount, transaction costs); The balance of the resold premium is reversed as an accounting entry.

4. Debt restructuring between the enterprise and the lender.

It should be treated in accordance with the relevant provisions of the "Accounts Payable" account.

The credit balance at the end of this account reflects the amortized cost of the outstanding long-term borrowings of the enterprise.

The accounting treatment of short-term borrowings is as follows.

1. When borrowing:

Borrow: Bank deposit.

Credit: Short-term borrowing.

2. When accruing interest:

Borrow: Finance Charges --- Interest.

Credit: Interest payable.

3. When paying interest:

Debit: Interest payable.

Credit: Bank deposits.

4. When repaying the principal of the loan:

Borrowing: Short-term imitation borrowing.

Credit: Bank deposits.

5. If, on the date of repayment of the loan, the accrued and unpaid interest is paid at the same time:

Borrow: Short-term borrowing.

Interest payable. Credit: Bank deposits.

Methods of handling the accounting of long-term loans: when non-governmental non-profit organizations borrow long-term loans and deposit them in the bank, the "bank deposit" account is debited and the "long-term loan" account is credited; When the loan is repaid, the "Long-Term Borrowing" account is debited and the "Bank Deposit" account is credited. Borrowing costs incurred for day-to-day business activities are included in financing expenses, debited to the "Financing Expenses" account, credited to the "Long-term Borrowings" account, etc.

1. What kind of income does the transfer of the right to use intangible assets belong to?

The transfer of the right to use intangible assets is equivalent to leasing, and the income from the transfer of the right to use is collected, so it should be included in other business income; **Intangible assets belong to the property rights given to others, do not belong to the scope of business, have nothing to do with production and operation, and should be included in non-operating income.

Subordinate Accounts: 1 The transfer of ownership of intangible assets is ** intangible assets, and the "bank deposit" and other accounts are debited according to the actual transfer income, the "intangible assets impairment provision" account is debited according to the impairment provision that has been accrued for the intangible assets, the "intangible assets" account is credited according to the book balance of the intangible assets, the "taxes payable" and other accounts are credited according to the relevant taxes and fees payable, and the "non-operating income - **intangible assets income" or "non-operating expenses - **intangible assets loss" accounts are credited or debited according to the difference.

2. In the transfer of the right to use an intangible asset, the transferor still retains the ownership of the intangible asset and only transfers part of the right to use it to other units or individuals, and the transferee can only use it reasonably within the scope specified in the contract and has no right to transfer. The income obtained from the transfer shall be included in the "other business income", and the various expenses incurred in connection with the transfer shall be included in the "other business expenses", and the amortized value of intangible assets cannot be written off.

2. What are the debts of enterprises?

The debts of the enterprise mainly include: 1. The enterprise Hongye borrowed from the bank to borrow the state's money, including short-term loans or long-term loans; 2. The payment owed by the enterprise to the supplier for the purchase of materials is accounts payable; 3. The wages and other payments payable by the enterprise are the wages payable to the employees; 4. The national and local taxes payable by the enterprise are the taxes payable; 5. The amount owed by the enterprise to the individual, which is other payables. In general accounting, the liabilities account and the balance on the balance sheet are the debts of the enterprise.

Article 118 of the Civil Code.

Civil entities enjoy creditor's rights in accordance with law.

Methods of handling the accounting of long-term loans: when non-governmental non-profit organizations borrow long-term loans and deposit them in the bank, the "Yinji Hongxing Deposit" account is debited and the "Long-term Loan" account is credited; When the loan is repaid, the "long-term loan" section is debited and the "bank deposit" account is credited. Borrowing costs incurred for day-to-day business activities are included in financing expenses, debited to the "Financing Expenses" account, credited to the "Long-term Borrowings" account, etc.

Legal basisArticle 118 of the Civil Code.

Civil jujube entities enjoy creditor's rights in accordance with law.

Legal analysis: When a non-governmental non-profit organization borrows a long-term loan and deposits it in a bank, the "bank deposit" account is debited and the "long-term loan" account is credited; When the loan is repaid, the "Long-Term Borrowing" account is debited and the "Bank Deposit" account is credited. Borrowing costs incurred by non-governmental non-profit organizations shall be recorded in accordance with the actual amount incurred.

The borrowing costs incurred for the daily business segment activities are included in the financing expenses, and the "financing expenses" account is debited, and the "long-term loans" and other accounts are credited; In the case of borrowing costs incurred for the purchase and construction of fixed assets, the actual amount of borrowing costs incurred for special borrowings shall be debited to the account of "construction in progress" and credited to the account of "long-term borrowings" during the period of allowable capitalization.

Legal basis: Article 118 of the Civil Code of the People's Republic of China stipulates that civil entities enjoy the creditor's rights in accordance with the law.

All kinds of loans borrowed by enterprises from banks with a term of more than one year are called long-term loans. How should the long-term loan business of an enterprise be accounted for?

Accounting entries for long-term borrowing operations.

1. Obtain long-term loans

Borrow: Bank deposit.

Credit: Long-term borrowing.

2. Interest on long-term loans accrued at the end of the period:

Borrow: Management expenses (interest on borrowings that do not meet the conditions for capitalization during the preparation period).

Construction in progress (interest on capitalization).

Finance charges (expensed interest).

Credit: Interest payable (interest on long-term borrowings that repay principal at maturity and pay interest on a regular basis).

Long-term borrowing – accrued interest (interest on long-term borrowings that are repaid in a lump sum at maturity).

3. Pay interest on long-term loans in installments

Debit: Interest payable.

Credit: Bank deposits.

4. Return the principal and interest of long-term loans

Borrow: Long-term borrowing – principal.

Long-term borrowings – accrued interest.

Credit: Bank deposits.

How long-term borrowings are handled.

According to the different purposes of raising long-term loans, the Xingzen Hu is treated differently

1. Long-term loans for the purchase and construction of fixed assets shall be capitalized and included in the value of the fixed assets constructed;

2. Long-term loans incurred after the construction of fixed assets, delivered for use and handled the final accounts for completion, shall be directly included in the current profit or loss;

3. If it is not related to the fixed capital file or intangible assets, such as the financing cost of long-term borrowings raised for routine production, it will be directly included in the current profit or loss (financial expenses);

4. If it occurs due to investment, it shall be directly included in the profit or loss for the current period;

5. The long-term borrowing costs incurred during the preparation period (except for the borrowing costs incurred for the purchase and construction of fixed assets) shall be included in the start-up expenses;

6. If it occurs during the liquidation period, it shall be included in the liquidation profit or loss.

The interest payment methods and principal repayment methods of long-term loans mainly include: installment interest payment and maturity; one-time repayment of principal and interest at maturity; Amortization.