All loans are issued by banks only for certain purposes on the terms of repayment for a certain period; they can be bank or commercial. A bank loan is a monetary loan that is provided by a credit institution for the production needs of an organization; it can be long-term or short-term.
A short-term loan is a loan for a period of no more than one year; it is the main source of additional funds for an organization for temporary needs. Borrowed short-term money is used for temporary replenishment of fixed and working capital, for inventory, as well as for other needs.
Accounting for short-term loans on account 66
For the purpose of accounting for short-term loans in accounting, account 66 is intended accounting“Calculations for short-term loans and borrowings.” Account 66 is passive. It exists to summarize information about the movement and availability of short-term loans and credits received by the organization.
The loan can be obtained in both domestic and foreign currency. In the latter case, the currency is converted into rubles at the rate of the Central Bank of the Russian Federation, the conversion is made at the time of enrollment Money to a foreign currency account. Features of currency accounting can be read.
Exchange differences are included in operating expenses. Interest accrued for payment according to the loan agreement is also taken into account as part of operating expenses. In addition, in the process of applying for a loan, the organization may incur a number of additional expenses, such as payment for consulting, legal services, examination services, communication services and others. These expenses are also included in “Other income and expenses”.
When an organization receives loans or credits for a period of more than 12 months, their accounting should be kept separately from short-term borrowings. The chart of accounts and the Instructions for its use for accounting for long-term loans and borrowings provide for passive account 67 “Calculations for long-term loans and loans" (Order of the Ministry of Finance dated October 31, 2000 No. 94n).
We will tell you how synthetic and analytical accounting is carried out on account 67 in our consultation, and we will also provide standard accounting entries for accounting for long-term loans and borrowings.
Subaccounts to account 67 and analytical accounting
- long-term loans raised by issuing and placing bonds;
- accounting transactions (discounting) of bills and other debt obligations with a maturity period of more than 12 months;
- expenses on loans and borrowings (including accrued interest);
- loans and borrowings not repaid on time;
- transactions within a group of interrelated organizations, the activities of which are compiled in consolidated financial statements.
The subaccounts accepted by the organization must be fixed in the working chart of accounts approved in.
Analytical accounting on account 67 is carried out by type of loans and borrowings, banks and other lenders.
Typical accounting entries for account 67
Let us present in the table some typical accounting entries for accounting for long-term loans and borrowings (
A loan is a loan of money issued on the basis of repayment. The organization can take it from the bank. A bank loan is taken out for a certain period, at a certain interest rate and for certain needs of the organization. In the article we will talk about how loans and borrowings are accounted for in accounting, how a short-term loan differs from a long-term loan. In addition, the article provides convenient tables with postings.
First of all, it must be said that loans can be divided into short-term and long-term. The former have a validity period of less than 1 year, the latter more than 1 year.
To account for them, accounts 66 and 67 are used, the debit of which reflects the repayment of the loan, the debit of its receipt and the accrual of interest.
Accounting account 66 is used to account for short-term credit loans, and account 67 for long-term ones.
Let's look at the accounting features in more detail below.
Accounting for short-term loans (postings to account 66)
In practice, it is short-term loans and borrowings that are most common. Organizations borrow them from credit institutions for temporary needs and return them within a year. This money is usually used to purchase material assets, goods, upon sale of which the invested money will quickly return as part of the proceeds from the sale, and therefore it will be possible to repay the debt to the bank.
Credit money can be received both in rubles and in foreign currency. In the latter case, in order to reflect them on the accounting account, it is necessary to convert the currency into rubles at the rate of the Central Bank of the Russian Federation valid on the date of receipt of the money - crediting the currency to the foreign exchange account.
Account 66 “Settlements for short-term loans and borrowings” is passive, intended for enterprise accounting. Read what a passive account is and what its features are.
The receipt of credit money from the bank is reflected in the loan account 66 in correspondence with the cash account, and the following entry is reflected in the accounting department: D51 (50, 52) K66.
All exchange rate differences arising as a result of the conversion of foreign currency into domestic rubles are reflected in the composition. A positive exchange rate difference is reflected using posting D66 K91/1. Negative exchange rate difference – D91/2 K66.
Exchange differences and interest are the main costs of a loan. There are also additional ones.
All additional costs associated with applying for and receiving a loan are also included in operating expenses. Additional expenses may include various types of services (legal, examination, consulting, etc.). The wiring for their reflection is D91/2 K60 (76).
Interest accrued on the loan is reflected using entry D91/2 K66, that is, it is also included in operating expenses.
The return of loan money and the payment of interest is reflected using entry D66 K51 (50, 52). If an organization repays its debt in installments every month, then this entry is made monthly for the repayment amount.
Postings on short-term loans (account 66):
Accounting for long-term loans (postings to account 67)
Long-term loans are usually taken out by an organization to update fixed assets, purchase intangible assets, carry out modernization, reconstruction, expansion of production, that is, these are long-term investments that cannot quickly pay off. They are taken, as a rule, for 5-10 years.
Credit institutions issue long-term loans only to stable operating organizations with a stable financial position. It is problematic for a young enterprise to obtain a long-term loan; banks take issuing such loans very seriously. Interest on long-term loans is usually noticeably lower than interest on short-term loans, but it is also much more difficult to obtain. Review of the application and registration will take much longer.
Account 67 “Settlements for long-term loans and borrowings” is also a passive account intended for accounting for liabilities.
The entries for accounting for long-term credit money are similar to the entries for accounting for short-term ones.
Receipt of credit money and the accrual of interest on it is reflected in the loan account 67, their payment is reflected in the debit account 67.
All expenses for obtaining and processing a long-term loan are included in operating expenses, as well as exchange rate differences when receiving foreign currency.
Accounting for long-term loans has one feature: a year before the end of the repayment period, an organization in its accounting can transfer a loan from the category of long-term to short-term, and the posting D67 K66 is performed.
Or perhaps the organization does not want to transfer credit money from one account to another, in which case the loan will be listed on the account. 67 until its full repayment.
Postings for accounting for long-term loans (account 67):
| Debit | Credit | the name of the operation |
| 50 (51, 52) | 67 | Long-term loan received |
| 91/2 | 67 | Interest accrued under the loan agreement |
| 67 | 91/1 | A positive exchange rate difference was accrued on a long-term loan and interest in foreign currency |
| 91/2 | 67 | A negative exchange rate difference was accrued on a long-term loan and interest in foreign currency. |
| 66 | 50 (51, 52) | Repayment of a long-term loan |
| 67 | 66 | The loan was transferred from long-term to short-term |
A bank credit account is a financial instrument, the legal nature of which, although disclosed in sufficient detail in special legislation, by-laws and local documentation, nevertheless causes a lot of controversy related to its opening, maintenance and accounting. Below we will look at the most common problems.
What is a bank account?
The bank opens a credit account for its client (both citizen and legal entity) in order to ensure the technical ability to both issue a loan and receive it back borrowed funds from the client. The latter, as they return, will deposit them into such a separate account.
The purpose of a credit account in a bank is to reflect in the balance sheet of the bank itself transactions aimed at the formation and repayment of loan debt in accordance with the provisions of loan agreements (see question 1 from the information letter of the Central Bank of the Russian Federation dated August 29, 2003 No. 4).
Another common name for such an account is a loan account.
Taking into account the form of issuing a loan and the method of managing the account, the following types of credit bank accounts can be distinguished:
- Simple. The amount issued as a one-time loan is placed on it, and funds are deposited into it to repay this loan.
- Line of credit - a loan to a bank account is transferred in installments within the established limit as needed.
- Overdraft. A special cash reserve is linked to the client’s account (current or settlement), which the client can use in situations where there are not enough own funds to carry out a transaction on the account.
A short-term loan (credit) from the bank has been credited to the current account
Short-term loans are considered loans and credits issued for a period of up to 12 months.
Short-term loans are generally used by clients to finance current needs. Thus, short-term loans/credits serve to cover additional needs for working capital.
Accounting for short-term loans in the organization is carried out on account 66 “Settlements on short-term loans and borrowings”, subaccounts 01 “Short-term loans” and 02 “Interest on short-term loans” (see, for example, order of the Ministry of Agriculture of the Russian Federation dated June 13, 2001 No. 654, etc.) d.) or other relevant subaccounts.
Moreover, if a short-term loan is transferred to the organization’s current account, then account 66 is a credit account, and the corresponding account in the corresponding accounting entry 51 “Current accounts” - debit.
If, on the contrary, a short-term loan received from a bank is repaid from the current account, then the credit account will be 51, and the debit account will be 66.
Long-term loans to a bank account : long-term loan accounts
Loans and credits issued for a period of more than one year are considered long-term. Such funds in the organization’s accounting department are accounted for in a separate account 67 “Settlements for long-term loans and borrowings.”
When transferring long-term loan funds to the current account of a legal entity / individual entrepreneur, the credit account is precisely account 67, and the debit account is 51.
At the same time, interest on loans due for payment (also valid for short-term loans) is reflected in account 91 “Other expenses” (see clause 7 of the accounting regulations..., approved by order of the Ministry of Finance of Russia dated October 6, 2008 No. 107n) , which is a debit, and account 67 is reflected as a credit.
Payment of interest is carried out by corresponding accounts 51 and 67 (the first is credit, and the second is debit).
Bank loan account and credit card: which account is used?
A credit card is a banking product that allows you to mobile use bank credit funds allocated to an individual or organization (in this case the card is called corporate). Spending of funds and subsequent repayment of debt are made using a loan (credit) account.
In this case, the card acts as nothing more than a physical medium that allows its owner to use a loan account outside the office of a credit institution or without special services (for example, Internet banking) and in the presence of special devices that allow reading the code from the plastic (ATMs, payment terminals, POS- terminals, etc.).
Charging a commission for opening and maintaining a loan account for individuals is illegal (decision of the Supreme Court of the Republic of Bashkortostan dated December 13, 2016 in case No. 33-24213/2016). At the same time, on completely legal grounds, the bank can charge fees agreed upon in the contract for issuing a card, its maintenance and special services (mobile banking, the possibility of making contactless payments, etc.).
So, a credit (loan) account is opened in order to ensure the technical ability of the bank to issue a loan and repay it by the borrower.
In accounting, loans and borrowings are displayed as follows:
- short-term bank loans - account66;
- long-term bank loans - account 67.
Sub-accounts are opened for account 67:
- 67-01 Long-term loans and borrowings.
- 67-02 Interest on long-term loans and borrowings.
Debit 51, 52, 55, 60... Credit 67-01 - reflects the amounts of long-term loans and borrowings received by the organization.
Long-term loans raised by issuing and placing bonds are accounted for separately in account 67-01. Moreover, if bonds are placed at a price exceeding their par value, then entries are made Debit 51-00 ... Credit 67-01 (at the par value of the bonds) and (for the amount of excess of the bond placement price over their par value). The amount allocated to the account is written off evenly during the period of circulation of the bonds to the account. If bonds are placed at a price below their par value, then the difference between the placement price and the par value of the bonds is accrued evenly over the circulation period of the bonds Debit 91 Credit 67-01.
Interest payable on loans and borrowings received is reflected in the credit of account 67 in correspondence with the debit of the account. Accrued interest amounts are accounted for separately.
Debit 67 Credit<счета денежных средств> - loans and borrowings have been repaid. Credits and borrowings not paid on time are accounted for separately.
Analytical accounting of long-term loans and borrowings conducted by:
- types of credits and loans, credit institutions and other lenders who provided them.
- individual loans and borrowings.
A separate sub-account to account 67 records settlements with banks for accounting (discount) transactions of bills and other debt obligations with a maturity of more than 12 months.
The accounting (discount) operation of bills and other debt obligations is reflected by the bill-holder organization Credit 67 (face value of the bill) and Debit 51-00 or 52-00 (actually received amount of funds) and (accounting interest paid to the credit organization).
Debit 67 Credit<счета учета дебиторской задолженности> - the reflection of the amount of the bill during the accounting (discount) operation of bills and other debt obligations is closed on the basis of a notification from the credit institution about payment.
Debit 67 Credit<счетами денежных средств> - an entry is made when the organization-holder of the bill returns funds received from the credit institution as a result of discounting (discounting) bills or other debt obligations, due to the failure of the drawer or other payer of the bill to fulfill its payment obligations on time. At the same time, debt for settlements with buyers, customers and other debtors, secured by an overdue bill of exchange, continues to be recorded in the corresponding accounts receivable.
Analytical accounting of discounted bills conducted by:
- counterparties (credit institutions that have discounted bills or other debt obligations);
- contracts (separate bills).
Accounting for settlements with credit institutions, lenders and drawers within a group of related organizations, the activities of which are compiled in consolidated financial statements, is kept separately on account 67.
