Accounting for loans and borrowings in accounting

Accounting – a procedure in which business financial services registers reflect borrowing and lending transactions. What is the specificity of these records? Through which accounting are long-term liabilities and short-term loans and loans reflected in the accounts?

What is the difference between a loan and a loan?

What is the difference between a loan and a loan?

First, we study some of the theoretical accounting of the liabilities. Before you consider implementing loan accounting and loans, you can see the differences between them. These criteria can be identified by reference to the provisions of Russian civil legislation.

As regards the loan: in accordance with the agreement, one party acting as a lender transfers ownership of money or other resources to another business entity – the debtor and the other returns the property to the former or equivalent property.

Credit agreements can be signed by both organizations and individuals. This Agreement must be in writing unless otherwise provided by law.

A Contracting Party may be a Contracting Party of any citizen or organization. Operations of the corresponding type are not licensed and are generally not limited. For example, in a manner governed by civil law, a loan can be obtained from the founder or partner organization.

A loan is a loan that can only be provided by an organization in the state of a financial institution, provided that it obtains a license from the Central Bank of the Russian Federation. Loans, in turn, are based not only on the standards of the Civil Code of the Russian Federation but also on other financial sources of law.

However, they should be provided only on the basis of a written contract. Bank loans are generally considered urgent and include interest payments.

The agreement between the financial institution and, in many cases, the borrower provides for a corresponding loan with any asset, guarantee or special contract with the insurance company. The basic differences between loans and loans are therefore that the first type of liabilities:

  • arise from the conclusion of a contract with a specialized financial institution licensed by the Central Bank of the Russian Federation,
  • involve the transfer of the creditor to the debtor in all cases of cash;
  • they arise as a result of the conclusion of a written contract between the parties.

The contract between the lender and the borrower sets out all the basic terms and conditions of the loan: the amount transferred from one party to the other, the amount and conditions for calculating interest, interest.

The subject of accounting operations with loans in accounting

The subject of accounting operations with loans in accounting


Now consider what objects can correlate accounting loans and loans in accounting. The main ones are commercial transactions arising from the performance of a contract by an undertaking whereby one entity – the creditor or the creditor – transfers, as noted above, the ownership of the other to the debtor, money while the other undertakes to repay the first amount withdrawn and set by agreement – also interest.

In some cases, it may be the subject of an agreement to be a certain tangible object – real estate or equipment, a mental product (such as software). In exceptional cases, it is assumed that the debtor repays less than the amount withdrawn under the contract.

This is generally possible if the parties to the agreement are the central bank of the state that has adopted a policy of negative interest rates and private financial institutions. In Russia, the central bank’s key rate is now relatively high, so loans issued between different market participants almost always involve interest payments.

Accounting for loans and borrowings in accounting carried out in special accounts 66 and 67. The first reflects operations with short-term loans, the second – long-term. The relevant accounting procedure is approved by a separate source of the law – PBU 15/2008. We will study in more detail how these procedures are carried out under the provisions of regulatory legislation.

Accounting for borrowing operations in accounting: regulatory framework



In accordance with the legislation under which loans and borrowings are accounted for in the accounts, the amount of an enterprise’s liabilities – if acting as a debtor – is reflected in the accounting records based on the content of the contract with the creditor. Information on loan repayment conditions should also be published in the news sources.

Loans and loans are divided into 2 types – short-term and long-term and their accounting is carried out on the above accounts. The cost of borrowing should be reflected in the accounts separately from the amounts raised under the loan agreement. These costs are reflected in the accounting documents for the period in which they occurred. They should also be equally included in the other expenditure structure of the organization.

The use of special accounting accounts amounts corresponding to the principal or interest on long-term or short-term loans or credits are generated using accounting accounts. Consider their specifics.

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