• Definition of a loan.
• Identify the loan as one of the forms of financing
• Identification of a receipt with the payment of the regular fee for a loan.
• Identify a payment receipt amortization of capital
• Identify a receipt the amount of interest.
• Identify the principal amortization payment with the corresponding settlement account.
• Identify interest installment payment with the corresponding settlement account.
• correctly account for obtaining a loan.
• correctly account for the transaction costs as an expense.
• correctly account for the payment of any periodic installment of the loan.
• Post correctly, each 31/12, the ac / p step of outstanding debt.
• Post correctly, at year end the charging of interest accrued if necessary.
• With the help of the pay table account different situations
1. The concept of long-term financing.
Obtaining long-term financing condition usually involves repayment through multiple payments for more than a year. The way back generates different amortisation models discussed in the Financial Management module.
Accounting for these operations is indifferent to the amortisation method used, as they pose the same problems accounting. Accounting is simplified, as with the “leasing” knowing the pay table of the operation.
Therefore the accounting reasoning is the same indicated for the case of single repayment loans. I continue criteria set by the PGC of SMEs. Each year end will have:
• Reclassify debt going ac / p payments next year.
• accrued interests shall be debited exercise and not due.
2. The pay table. Identification of its elements.
The pay table is the document by which we know the evolution of the different variables involved in the operation and reflected in each paper receipt.
The share of interest: Collect the interest that must be paid on each receipt (payment). The interest is always calculated on outstanding debt to repay in each payment. They correspond to the accounting and financial expenses.
The principal installments are the part of the periodic fee that is dedicated to the repayment of principal borrowed capital or. It corresponds to the short-term debt to stockholders.
Regular fee: The value of each of the payments to be made during the operation, understanding of principal and interest and corresponds to the value of C obtained in the financial equation. It is the amount to be paid in each period the bank.
3. Accounting Contents.
Obtaining a loan does the emergence of a debt in this chapter shall be of more than one year maturity and therefore long term. The main accounts to be used are:
Long-term debt with credit institutions: Collect the loan amount received if it has been granted by a financial institution and maturing after more than a year.
Long-term debt: includes the amount of the loan received if it has been granted by a natural or legal person other than a financial institution.
Payables to credit institutions: Collect the loan amount received if it has been granted by a financial institution and whose maturity is within the current year. It collected every 31 / XII transfer payments the following year.
Current liabilities: includes the amount of the loan received if it has been granted by any natural or legal person other than a financial institution maturing within the current year. It collected every 31 / XII transfer payments the following year.
Interest on short-term debts to credit institutions: includes the amount of interest accrued in the period and not yet paid.
Interest on short-term debt: includes the amount of interest accrued in the period and not yet paid.
Interest on short-term debt and long term: includes the amount of interest earned in the period regardless of whether or not paid.
Banking and similar services: includes the amount paid by commissions.
The accounting process: The seats to make would be:
By obtaining the loan: the debt is separated into short-term payments to be made in the current year and long term, for the rest of the debt.