The concept of debt, the popular understanding of creditor s rights and debts

If the debt is settled with inventory, the debtor shall sell the debt at the book value of the debt and carry forward the inventory at the book value of the inventory.

The difference between the carrying amount of the debt after deducting the output VAT and the carrying amount of the inventory is recognized as a loss or capital reserve for the current period.

If boot is involved, it shall be treated in accordance with the following provisions: if boot is paid as part of the debt, "accounts payable" is debited, and "cash" or "bank deposit" is credited;

If boot is received, the boot is debited as compensation for the inventory assets and credited to the "inventory" as "cash" or "bank deposit".

Example: On 1 January 2001, Shenguang Company sold a batch of materials to Red Star Company at a price of 105,000 yuan including tax. On July 1, 201, Red Star Company had financial difficulties and was unable to repay its debts as stipulated in the contract, and by agreement between the two parties, Shenguang Company agreed that Red Star Company would use products to offset the accounts receivable.

The market price of the product is 80 000 yuan, the VAT rate is 17%, and the cost of the product is 70 000 yuan. Red Star Company made a provision of 500 yuan for the decline in the price of inventory for the transferred materials, and Shenguang Company made a provision of 500 yuan for bad debts for creditor's rights. It is assumed that no other taxes are taken into account.

Red Star: 1) Calculations.

At the date of debt restructuring, the carrying value of the restructured debt was $105,000.

Less: $69,500 in carrying amount of transferred products (70,000-500).

VAT output tax (8o 000 17%) 13,600 yuan.

Capital reserve 21,900 yuan.

2) Accounting treatment.

Debit: Accounts payable 105000

Inventory decline provision 500

Credit: 70,000 items in stock

Tax payable – VAT payable (output tax) 13600

Capital reserve – other capital reserve 21900

Debt refers to the obligation of the debtor to the creditor to act or not to act in accordance with the law in the legal relationship of debt.

Legal analysis: 1. The concept of creditor's rights: creditor's rights are the legal rights of the people who request a specific person to do a certain act (act or omission). 2. The concept of debt: debt is a duty of prudence in civil law to a specific person for a certain act or not for a certain act.

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

Creditor's rights and debts are common concepts in economic activities, and they are colloquially understood as follows:

1.Debt: A relationship in which a person owes money to another person or organization, or goods in kind, etc. For example, if an individual needs to repay the loan after taking out a loan from Xinshou Bank or spending a credit card, this forms a debt relationship in which the individual needs to repay the money to the bank.

Debt and claim are concepts that correspond to each other, i.e., where there is a debt, there must be a claim. A creditor is the one who holds the creditor's rights, and the debtor is the one who needs to perform the debt.

It should be noted that the debt-creditor relationship is not limited to the financial sector, but also includes the debt relationship in various economic activities. In daily life, we need to pay attention to protecting our creditor's rights, and at the same time reasonably analyze the debt risks we bear to avoid debts that cannot be repaid.

Creditor's rights are civil law rights to ask others to do a certain act (act or omission). Bu Han is based on the principle of the right and obligation to be a debt, that is, it must be a civil law obligation for a certain act (act or omission). Therefore, the relationship between debt and debt is essentially a judicial creditor-debtor relationship, and neither creditor's right nor debt can exist independently, otherwise it will lose its meaning.

A debt is a specific relationship of rights and obligations between the parties that arises in accordance with the provisions of the contract or in accordance with the provisions of the law. It is generally believed that a debt is a civil legal relationship between specific parties that requests a certain payment. Debts include claims and debts.

[Legal basis].Article 509 of the Civil Code of the People's Republic of China.

The parties shall fully perform their obligations in accordance with the agreement.

The parties shall follow the principle of good faith and perform obligations such as notification, assistance, and confidentiality in accordance with the nature, purpose, and transaction habits of the contract.

In the process of performing the contract, the parties shall avoid wasting resources, polluting the environment and damaging the ecology.

Article 510.

After the contract takes effect, if the parties have not agreed on the quality, price or remuneration, place of performance, etc., or the agreement is not clear, they may supplement it by agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant provisions of the contract or transaction customs.

Dependent debts are other debts derived from the main debt, which are subordinate and closely related to the main debt. However, some of the subordinate debts are exclusive to the debtor itself, and such subordinate debts are not transferred with the transfer of the main debt. Common debts in life include interest, liquidated damages, etc.

[Legal basis].

Article 585 of the Civil Code provides that the parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the method of calculating the amount of compensation for losses arising from the breach. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed breach of contract is excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce it at the request of the parties. If the parties agree on liquidated damages for delayed performance, the defaulting party shall reply after paying the liquidated damages, and shall also perform the debt.

Article 667:A loan contract is a contract in which the borrower borrows money from the lender and returns the loan at maturity and pays interest.

Pronunciation: [ zhài wù ].

Basic paraphrase: 1Obligation to repay by labor or money. Relative to creditor's rights.

2.Debts owed.

3. Debt refers to the creditor's provision of funds to the debtor in order to obtain interest and the debtor's commitment to repay these funds and interest at an agreed date in the future.

4. Debt, the symmetry of "creditor's rights". It refers to the obligation of the debtor to the creditor to do a certain act or not to do a certain act in accordance with the law in the legal relationship of the debt. For example, in the sales contract, the seller has an obligation to deliver the goods sold to the buyer, this is a debt that is a promise of a certain act.

For example, in the publishing contract, the author has the obligation not to deliver the manuscript to a third party for publication, which is a debt that does not constitute a certain act. The performance of the debt is the realization of the creditor's right, and the debt and the creditor's right together constitute the content of the debt. There are different types of debts according to different criteria.

It can be divided into contractual debts and non-contractual debts according to the occurrence of different debts, because of the number of debtors, it can be divided into single debts and multiple debts, because of the responsibility between debtors, it can be divided into joint and several debts according to the debts, and because of the selectivity of the performance of debts, it can be divided into simple debts and optional debts.