Accounting For Short-Term And Long-Term Borrowings

Typical examples

Example 1: Hongyun company borrowed 2000000 yuan from the bank in April 30, 2000, and the loan period is 3 years. The annual interest rate is 8.4%. The money has been deposited in the bank and the principal and interest are paid at the time of maturity. The loan is used to purchase one large equipment needed for production. In May 15th, Hongyun company has received the equipment, the price is 1950000 yuan, the installation fee is 50000 yuan, all are paid by bank deposits, and the equipment has been delivered on the same day.

Example 2: according to the material of case 1, suppose that enterprises repay the principal equally in December 31, 2000, December 31, 2001, December 31, 2002 and April 30, 2003, and repay the interest accrued separately.

The accounting of long term loans should reflect the changes of loan amount and interest settlement in time, and carry out corresponding accounting treatment in a timely manner.

Answer number 10140101: ask questions for this question.

(1) calculate interest on -5 15 April 30, 2000 and carry forward fixed assets.

Hongyun company borrowed money in April 30, 2000, and the equipment was put into use in May 15th. Interest during this period should be included in the cost of the under construction project. The interest amount is:

2000000 x 8.4% x 12 x 0.5=7000 (yuan)

Borrow: in construction 7000

Loans: long-term borrowing 7000

When carrying forward fixed assets:

Borrowing: fixed assets 2007000

Loan: in construction 2007000

(2) in December 31, 2000, the interest payable on May 16, 2000 -12 31 should be calculated as its profit and loss. The amount of interest shall be:

2000000 x 8.4% x 12 x 7.5=105000 (yuan)

Borrowing: financial cost 105000

Loans: long-term borrowing 105000

According to the contract, the long-term loan principal is divided into four equal repayments, and the principal amount of each loan should be:

2000000 x 4=500000 (yuan)

The sum of principal and interest payable in December 31, 2000 is:

500000+7000+105000=612000 (yuan)

The compilation of accounting entries is as follows:

Borrowing: long-term borrowing 612000

Loan: bank deposit 612000

(3) processing in December 31, 2001.

The remaining part of the loan should be accrued throughout the year.

For:

(2000000-500000) x 8.4%=126000 (yuan)

Borrowing: financial cost 126000

Loans: long-term borrowing 126000

The compilation of accounting entries is as follows:

Borrowing: long-term borrowing 626000

Loan: bank deposit 626000

(4) processing in December 31, 2002.

The interest on the remaining part of the loan should be:

(2000000-500000-500000) x 8.4%=84000 (yuan)

Borrow:

Eighty-four thousand

Loans: long-term borrowing 84000

The sum of principal and interest payable in December 31, 2002 is:

500000+84000=584000 (yuan)

The compilation of accounting entries is as follows:

Borrowing: long-term borrowing 584000

Loan: bank deposit 584000

(5) processing in April 30, 2003,

The interest accrued in the remaining part is:

(2000000-500000-500000-500000) x 8.4% x 12 x 4=14000 (yuan)

Borrowing: financial expenses

Loans: long-term loans

The compilation of accounting entries is as follows:

Borrowing: long-term borrowing 514000

Loan: bank deposit 514000

Be careful:

(1) borrowing, accrued interest, exchange gains and losses, and repayment of principal and interest of long-term borrowings are accounted for through "long-term borrowing".

(2) the auxiliary expenses incurred by special loans may be directly recognized as "financial expenses" if the expenses are relatively small; if the expenses are large, they are included in "in construction projects" or "financial expenses".

(3) the auxiliary expenses incurred in arranging other loans are directly charged to "financial expenses".