Accrued taxes are reflected in account 66. Short-term and long-term loans

Account 66 in accounting is used to reflect information about the company's loans. It shows the movement of funds accepted by the organization for a period not exceeding 12 months. Next, accounting advice on this article will be presented.

Reflection of amounts

Funds received by the enterprise for a period of less than 12 months are attributed to account 66 (loan). The following items are debited:

• "Cash desk" (count 50).
• “Settlements with contractors/suppliers” (account 60).
• "R/s" (count 51).
• "Special accounts" (account 55).
• "Currency accounts" (account 52).

Movement of amounts on bonds (accounting consultations)

Funds raised by the issue and placement of these securities are reflected separately. If the placement price of bonds is higher than their face value, then the entry is made according to DB account. 51. In this case, accounts 66 and 98 are credited. The latter reflects the income of the upcoming periods. Securities at par value are taken into account in Art. "Short-term loans" (account 66). Account 98 reflects the amount of excess of the placement cost over the par value. These funds are written off evenly over the period of circulation of the bonds in the account. 91. The latter shows other expenses/income. When placing securities at a cost less than their nominal value, the difference is added evenly throughout the period of circulation with the CD account. 66 in db sch. 91.

Separate reflection of funds

Interest payable on loans received is transferred to Kd to account 66. Postings are made from the account. 91. Accrued interest is reflected separately. Account 66 in accounting is debited for the amount of repaid obligations. The records include items recording the movement of funds. The amounts on them are reflected according to Kd. Obligations not paid on time are recorded separately. Analytics is carried out by types of loans and credits, financial organizations that provided them.

Discount

Settlements with credit companies for the accounting of bills of exchange and other debt obligations, the repayment period of which does not exceed 12 months, are reflected in a separate sub-account. The holder of the bill shows the face value according to Kd. The corresponding account number is 51 or 52 and 91. The first two reflect the amount actually received, the last one shows the interest paid by the organization. The closing of the transaction is carried out on the basis of a notification from the financial company about payment.

The payment amount is transferred in DB to account 66 in accounting. The entry credits items that record accounts receivable. When the holder company returns funds received from a financial institution at a discount or other debt obligations, due to failure by the drawer or other payer to fulfill the contractual terms of payment, an entry is made in DB to account 66 in accounting and Kd articles recording the movement of money. At the same time, unpaid amounts by buyers, customers and other counterparties continue to be reflected. Accounting is carried out for the relevant accounts receivable items.

Controversial point

Settlements on short-term loans and borrowings within a group of related companies, the activities of which are reported on, are reflected separately. Here, according to a number of experts, there is some inconsistency in the plan's developers. In terms of financial investments, they combined these investments into one account. As for the funds raised, according to the logic of the developers, they should be divided into debt lasting more than 12 months and less than a year.

Specifics

The 66th account in accounting is considered very important. It reflects loans and other funds raised. At the same time, the loans themselves are divided into short-term (less than a year) and long-term (more than 12 months). The latter are shown on the account. 67. Account 66 is considered predominantly passive. However, a debit balance may form on it if more is deducted than was due for payment. Next, we will describe how accounting is carried out for situations that occur most often in practice.

Traditional case

The receipt of a loan is formalized by crediting funds, or the lender repays the debtor’s existing financial obligations. In the latter case, an assignment agreement is concluded. When funds are normally credited, the account is debited. 50-52, 55. In the second case, funds are credited to DB articles 60, 76. Account 66 is credited in both options for obtaining a loan.

Issue and sale of bonds

The presence of the securities themselves does not affect balance sheet accounts. However, as the bonds are sold, the following entries are made: Db 50, 51 Kd 66.

The instructions for the plan indicate that funds raised by the issue and placement of bonds are recorded separately. Previous recommendations described one option for accounting for sales - at a cost exceeding the face value. The new instructions provide explanations for the situation when the sale is carried out at a lower price. When placing bonds at par, problems, as a rule, do not arise.

The above entry will be considered sufficient. If a bond is sold at a value higher than its nominal value, the difference is recorded in the account. 98.1. This amount must subsequently be written off throughout the entire circulation period of the paper. For this purpose 98.1 is debited. Corresponding account number – 91.1 (other receipts). When bonds are sold at a price below par, the difference is accrued evenly throughout the circulation period. Account 66 is credited, and account 91.2, accordingly, is debited.

Interest payment

It almost always occurs when receiving loans or borrowings. The specificity of double entry is that when funds are received, only the amount received is shown. At the same time, the real amount of debt in some cases is significantly greater than it. This difference arises due to accrued interest on the underlying debt. Experts see a solution to this issue in additional interest accrual at the end of the period in which they are calculated. That is, the following entry is proposed: Db 91.2 Kd 66. Such an entry is made in each reporting period.

Explanations on PBU

The above approach complies with the requirements of the accounting regulations (15/01). It states, in particular, that debt is reflected with the inclusion of interest payable at the end of the period in accordance with contractual terms. In clause 12 of the PBU, expenses on received loans and borrowings are recognized as operating expenses. They refer to the period in which they were actually produced. However, it should be noted that not all of these expenses are operating expenses. For example, this occurs if funds are received and used to form an investment asset or are used for advance payment for work, material assets, or services. In addition, expenses related to loans and borrowings include:

• Interest due on funds received.
• Bond discount.
• The difference between the amount indicated in the bill of exchange and the funds actually received/their equivalents when placing the paper.
• Amount and exchange rate differences that relate to interest payable on loans received in foreign currency or foreign currency. e.
• Expenses for copying and duplicating work.
• Costs of consulting and legal services.
• Costs of carrying out examinations.
• Amounts of fees and taxes (in cases provided for by law).
• Expenses for payment of communication services.
• Other costs directly related to obtaining credits/loans and placing liabilities.

Additional expenses may be pre-recorded as accounts receivable. Subsequently, these costs will be included in operating costs during the period during which the assumed obligations will be repaid.

Inventory costs

If an enterprise uses borrowed funds to prepay inventories, work, services, or other valuables, then the costs of servicing such loans are included in the increase in accounts receivable. After the organization receives inventories and other objects, the subsequent accrual of interest and other costs are reflected in the reporting according to the general rules - with the inclusion of these costs in the operating costs of the borrower.

Loan in foreign currency or currency. e.

When repaying, an exchange rate or amount difference may occur. The previous instructions indicated that analytical accounting is carried out for individual terms and loans. This is not included in the new recommendations. However, this does not mean that a specialist should refuse such accounting. In accordance with the requirements of PBU 15/01, analytics should be organized in the context of overdue and urgent debts. The latter should be understood as obligations whose repayment time has not yet arrived or has been prolonged (extended). An overdue debt is one whose payment term under the contract has expired. Upon expiration of the established period for repayment of obligations, the borrowing company must ensure their transfer from one category to another. The operation of transforming urgent debt into overdue debt is carried out on the date that follows the day on which, according to the terms of the credit agreement (loan agreement), the borrower was required to repay the principal amount of the debt.

Account 66 “Settlements for short-term loans and borrowings” is used by legal entities to display information on mutual settlements made for borrowed funds provided to the company under agreements for a period of less than a year.

Account 66 in accounting is intended for generalization and subsequent monitoring of information about ongoing mutual settlements under agreements issued to the enterprise for borrowed funds and interest accrued for the use of loans and borrowings. Data on loans and borrowings received for periods of less than 12 months is displayed here.

Attention! To maintain accounting records of long-term loan agreements (over 12 months), account 67 is used.

Count 66 is passive. The loan displays the amounts of funds received for temporary use by the enterprise in correspondence with accounts 60,50,51,52, etc. By debit - partial or full repayment of loans and credits.

Attention! For interdependent companies that provide unified financial statements based on the results of their activities, mutual settlements for borrowed amounts received are displayed separately.

Additional borrowing can be provided by the company through the issue and subsequent placement of bonds. These transactions are accounted for separately on account 66. In cases where securities are placed at a price above their face value, the excess amount is additionally displayed on account 98. The difference is written off evenly throughout the entire period of placement of securities. In cases where securities are placed at a price below face value, then during the period circulation of bonds, the difference between the values ​​is added evenly from Kt66 to Dt91.

In addition, in addition to account 66, a sub-account can be opened to separately display information on transactions of transfer of bills by the bill holder to the bank and other obligations of the organization with maturities of no more than 12 months (the nominal value of the transferred bill is taken into account according to Kt66). The completion of the bill accounting operation is carried out on the basis of the received notice from the bank (other financial organization) by displaying the amount of the bill according to Dt66 in correspondence with the accounts receivable accounts. Operations for the return of money by the bill holder company to the bank as a result of failure to comply with the terms of agreements by the drawer are recorded under Dt66.

Please note! Accounts receivable, the collateral of which were overdue bills of exchange, remain displayed in special accounts.

Analytical monitoring

Monitoring of information displayed on account 66 is carried out depending on the type of borrowed funds, by counterparty creditors providing funds (for example, banks, regular suppliers). Bill settlements are analyzed for credit institutions that accepted the bill, counterparties-drawers and separately for each bill.

Regulatory regulation

Using the account 66 to display information on mutual settlements for borrowed funds provided for use by companies under agreements with terms of less than 12 months is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 15/2008 and other legislative acts.

Account 66 in accounting - common entries for business transactions

1. Obtaining short-term credits and loans

   Dt50,51,52,55 Kt66 - received cash or wire transfer

   Dt10.41 Kt66 - capitalization of inventory and materials, goods under a short-term loan agreement

   Dt60 Kt66 - transfer of existing debts to suppliers into a loan from them, transfer of received loans and credits to cover accounts payable

2. Displaying accrued interest for using money

   Dt91.02 Kt66

3. Write-off of outstanding overdue accounts payable

   Dt66 Kt91.01

4. Displaying the difference between the par value and the circulation price of securities, accounting for the difference in funds actually received on bills compared to the par value.

   Dt91.02 Kt66

5. Repayment of loans and credits

   Dt66 Kt50,51,52,55 - cash withdrawal from the cash register or non-cash transfer

   Dt66 Kt62 - repayment of mutual claims

Often, the normal functioning of an enterprise cannot do without a loan, since there is a need to attract additional working capital. A credit or loan is a sum of money that is issued on the terms of repayment, the period of which is clearly specified and at a certain percentage.

Sometimes a loan may be of a targeted nature, which precludes its use for other needs of the organization. Depending on the loan repayment period, they are divided into short-term (if the loan term does not exceed 12 months) and long-term. In this article, we will look at the main entries for account 66 - “Calculations for short-term loans and borrowings.”

How to display the receipt and return of credit/loan funds or inventory items in account 66 postings?

To display short-term credit transactions, a special accounting account 66 “Settlements for short-term loans and borrowings” is used, which displays information about the receipt and repayment of short-term loans and borrowings of the enterprise. Account 66 is passive, so all receipts are shown as a credit to this account, and debt repayments (loan repayments) are shown as a debit account.

Analytical accounting of credit transactions allows you to differentiate information regarding the sources of loans (credits) according to concluded agreements.

Subaccounts 66 accounts

Features of using passive account 66 in postings

Account 66 is used to account for credit funds, and not only national ones. Thus, when receiving a loan in foreign currency, in order to display them in accounting, they must be converted into rubles, according to the established rate by the Central Bank of Russia, which is valid on the date of crediting the foreign currency.

The receipt of credit funds is reflected in the credit of account 66 with the debit of cash accounts, namely:

• (if the loan is issued in cash);
• (non-cash form of lending);
• (if the loan is issued in foreign currency);

Obtaining loans or credits entails a certain share of the costs that the company will encounter in the future - these are interest on the loan, commission for its management and that arise when converting one currency to another. All these expenses or income (if the exchange rate difference is positive) are taken into account as part of operating costs in account 91/1 “Other income and expenses”.

There may also be additional costs associated with applying for and receiving a loan, which are also taken into account as part of operating costs, but in a separate accounting account 60 “Settlements with suppliers and contractors”. These may include legal and consulting services, examinations, communication services and other expenses (debit account 91/2, and credit 60).

Repayment of loan funds, payment of interest and bank commissions are displayed monthly in the debit of account 66 in correspondence with cash, non-cash or foreign currency accounts (50,).

It should be noted that account 66 can also be used to account for the issue and placement of bonds if short-term loans were raised with their help. If the bond is placed at a price higher than the nominal value, then the account will be debit, and the account will be 66 and 98 “Deferred income”. If the bond is placed at a price lower than the nominal price, then this difference is added evenly from credit 66 to debit 91. Interest payable is taken into account separately by the following posting: debit 91 and credit 66.

Table of typical entries for account 66 “Settlements for short-term loans and borrowings”

Accounting is a procedure within which the registers of the financial services of an enterprise reflect those related to credits and borrowings. What is specific about these records? Through what accounting entries are long-term liabilities and short-term loans and borrowings reflected?

What is the difference between a loan and a loan?

First, let's study some theoretical aspects of accounting for the obligations in question. So, before considering how credits and borrowings are accounted for in accounting, you can study the differences between them. These criteria can be identified by referring to the provisions of Russian civil legislation.

Regarding the loan: in accordance with the agreement, one party, acting as a lender, transfers the possession of funds or other resources to another business entity - the borrower, and after some time the second returns to the first this property or something equivalent to it.

Loan agreements can be signed by both organizations and individuals. This agreement must be concluded in writing, unless otherwise provided by law.

Any citizen or organization can be a party to a conventional loan agreement. Operations of this type are not licensed and, as a rule, are not limited. In a manner regulated by civil law, a loan can be obtained, for example, from a founder or a partner organization.

In turn, a loan is a loan that can be provided by an organization only in the status of a financial institution, which requires a license from the Central Bank of the Russian Federation. Registration of loans, in turn, is carried out on the basis of the norms not only of the Civil Code of the Russian Federation, but also of other financial sources of law. However, they must be provided only on the basis of a written agreement. Bank loans are generally considered to be urgent and subject to payment of interest.

An agreement between a financial institution and a borrower in many cases involves securing the loan with an asset, a guarantee, or by concluding a special agreement with an insurance company. Thus, the fundamental ones are that obligations of the first type:

• arise as a result of concluding an agreement with a specialized financial institution with a license from the Central Bank of the Russian Federation,
• involve the transfer by the lender to the borrower in all cases of funds;
• arise as a result of the conclusion of a written agreement between the parties to legal relations.

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

Object of accounting for loan transactions in accounting

Let us now consider what objects the accounting of credits and borrowings in accounting can relate to. The main ones are considered to be business transactions arising as a result of the enterprise’s execution of an agreement, according to which one entity - the creditor or lender - transfers, as we noted above, into the possession of another - the borrower, funds, while the second undertakes to return the amount taken to the first, and also, if provided for in the agreement, also interest.

In some cases, the subject of the agreement may be a certain material object - real estate or equipment, an intellectual product (for example, software). In rare cases, the borrower is expected to return less than what was taken under the agreement. As a rule, this is possible if the parties to the agreement are the Central Bank of the state, which has adopted a policy of negative interest rates, as well as private financial institutions. In the Russian Federation, the key rate of the Central Bank is now quite high, so loans issued between various market participants almost always involve the payment of interest.

Accounting for loans and borrowings in accounting is carried out in special accounts 66 and 67. The first reflects transactions on short-term loans, the second - on long-term ones. The procedure for appropriate accounting is approved by a separate source of law - PBU 15/2008. Let us study in more detail how these procedures are carried out based on the provisions of regulatory legislation.

The procedure for accounting for loan transactions in accounting: regulatory regulation

In accordance with the rules of law according to which credits and borrowings must be accounted for in accounting, the amount of obligations of the enterprise, if it acts as a borrower, is reflected in the accounting registers based on the content of the agreement with the lender. Information about the timing of loan repayments must also be disclosed in reporting sources.

Credits and borrowings are classified into 2 types - short-term and long-term, and their accounting is carried out according to the accounts given above. Expenses associated with loans should be reflected in accounting separately from the amounts taken under the loan agreement. These costs are reflected in accounting documents for the period in which they arose. They should also be evenly included in the structure of other expenses of the organization.

Using special accounting accounts, accounting entries are generated using the amounts that correspond to the principal amount or interest accrued on long-term or short-term loans or credits. Let's consider their specifics.

Accounting for debt obligations: accounts and postings

In general, as we noted above, long-term and short-term loans and credits are reflected in accounts 66 and 67. Analytical accounting of the relevant obligations is carried out based on their assignment to a specific category, as well as separately (each loan is considered as an independent legal relationship).

The principal amount that the company owes is recorded in accounting as part of the accounts payable in the amount that is reflected in the agreement. The company must also record information about lost funds in the form of loans. The financial statements must also record the timing of repayment of obligations.

Borrowing costs must be taken into account separately from their principal amounts, in a certain billing period and subject to inclusion in the structure of other expenses. It does not matter on what terms the borrowed funds are provided. As part of accounting for interest in the company's accounting registers, credit entries are used for accounts such as 66 or 67, as well as those corresponding to those for which specific sources of payments are reflected.

Interest on obligations can be attributed to the costs of purchasing material and production resources if the principal amount of the corresponding funds is directly related to them and invested until the relevant resources are capitalized. If this condition is not met, then interest should be taken into account as part of transaction costs - using account 91.

An appropriate amount of capital can be used to invest in non-current resources. In this case, interest on loans is reflected through the following entries:

• under 08, as well as the credit of the main debt accounts in the event that interest was paid until the moment when the funds were put into operation;
• on the debit of account 91 and the credit of the main accounts, if the corresponding funds were transferred after the fixed assets were accepted for production.

If the loan is not repaid on time or if the interest is paid in arrears, then fines under the loan agreement should be reflected in accounting using a debit entry to account 91.2.

Thus, if amounts are borrowed and used for the purpose of investing in non-current assets, then the accountant records them through the following entries:

• Dt 08, Kt 66 (or 67) in the accounting registers, if interest on loans is transferred to the lender before the moment when fixed assets are put into operation or, for example, assets related to intangibles are registered;
• Dt 91, Kt 66 (or 67), if interest appears after the implementation of the noted transactions.

It is worth noting that if loan payments are made by an enterprise in arrears, then the fines provided for in the agreement are included in the structure of expenses, which are classified as non-operating. In this case, entries are generated for the debit of account 91. However, as soon as the credit or loan is repaid, the corresponding operation in accounting is confirmed by the following entry in the registers: Dt 66 (or 67), Kt 50 (or, for example, 51, 52 or 55).

Obligations repaid on time and those fulfilled later than the deadline established by the contract must be accounted for separately. Accounting for settlements on short-term and long-term loans is carried out, as we already know, also separately. It will be useful to consider the specifics of accounting for each type of transaction.

Accounting for liabilities

Regarding long-term liabilities, there are 2 main methods of accounting for them.

Firstly, you can generate transactions on account 67 before the repayment period of the loan expires. Secondly, it is allowed to reflect transactions on the corresponding account until 365 days remain until the corresponding obligations are repaid.

If the period is shorter, then account 66 should already be used, which, in turn, accounts for short-term loans. The way in which long-term loans are reflected in accounting - according to scheme 1 or 2 - must be approved in the company's accounting policy.

Loans through issue: accounting features

The characteristics of the borrowed funds in question are as follows. It is worth noting that the entries used to account for the liabilities in question are the same as in the case of conventional loans and borrowings.

The main feature of recording transactions with borrowed funds arising as a result of an issue in accounting is that if securities are put into circulation at a value higher than their nominal value or corresponding to it, the following entries should be applied:

• Dt 51, Kt 66 or 67 (in amounts corresponding to the nominal value of the issued securities);
• Dt 51, Kt 98 (in amounts reflecting the increase in the value of the issued securities relative to the par value).

In this case, the amount reflected in account 98 should be written off evenly within the period while the securities are being circulated, to account 91.

If securities are placed at a value below par, then the corresponding difference must be accrued evenly within the bond turnover period using the entry Dt 91.1, Kt 66 (or 67).

The company in the section in which the accounting of settlements on loans and borrowings is carried out can record that a decrease in the value of issued securities must first be taken into account in the structure of costs of future periods. If this is so, then to record business transactions in the accounting registers, posting Dt 97, Kt 66 (or 67) will be used.

An increase in the nominal price of a loan relative to the cost of its placement is included in the structure of operating expenses on a monthly basis during the period of circulation of securities using the following entry in the registers: Dt 91.2, Kt 97.

Interest should be accounted for separately from the principal. Reflection of transactions with them within the framework of transactions with bonds is carried out using the entry Dt 91.2 Kt 66, 67.

The company can approve in its accounting policy a rule according to which the accounting for the costs of loans and credits when paying interest on bonds, in turn, will also be included in the structure of deferred costs. In this case, wiring Dt 97, Kt should be used. 66, 67.

The amount of interest on securities, while they are being circulated, forms operating expenses - its component amounts are reflected monthly in the entry Dt 91.2 Kt. 97.

Basic and additional costs of obligations

The costs associated with the use of borrowed funds by an enterprise can be basic or additional. The first includes, first of all, the interest stipulated by the contract. The second most often involves exchange rate differences.

Basic costs must be included in the firm's operating expense structure. In order to correctly account for the loan in this case, the following entries are applied: Dt 91.2, Kt. 66 (or 67).

Additional costs most often include those associated with paying for the services of intermediaries when applying for a loan and consultants. It is also customary to include taxes and fees in the corresponding category of costs. In order to correctly account for a loan or credit according to the appropriate scheme, the following entries are used: Dt 91.2, Kt 60 (or 76).

Accounting for debts when purchasing fixed assets

Certain nuances characterize the accounting of loans and credits issued by an enterprise for the purpose of investing in fixed assets. Exactly how these liabilities are accounted for depends on whether the funds are subject to depreciation. If not, then the costs associated with obtaining a loan are included in the structure of operating expenses.

A specific list of fixed assets for which depreciation should not be charged is recorded in Russian PBUs. Accounting for loans and borrowings, if depreciation is accrued, involves including the corresponding costs in the initial cost of resources related to fixed assets. The appropriate procedure can be applied if:

• the company had costs associated with the acquisition or construction of fixed assets;
• the deadline for transferring interest on the issued loan or credit has arrived;
• the cost of the fixed asset is included in the structure of capital investments.

Another significant criterion is that the OS object must not be put into operation.

In order to take into account loans and credits according to the appropriate scheme, a special accounting account must be used - 08. Using it, the posting Dt 08, Kt 66 (or 67) is generated. But if the noted conditions are not met, then the costs of obligations are taken into account as part of operating costs. In this case, postings Dt 91.2, Kt are used. 66 (or 67).

Accounting for debts when purchasing materials

An enterprise can obtain bank loans or loans from partners if it is necessary to invest also in materials used in production. To account for such business transactions, a posting is used in which interest is included in the structure of the cost of materials: Dt 10, Kt. 66 (or 67).

Note that the interest paid increases the price of materials only if they are accrued before the corresponding resources are posted at the company's warehouse. If they are accrued after capitalization, then interest should be included in the structure of operating expenses. In this case, debit entries are used using account 91.2.

Accounting for bill loans

Let's consider another significant aspect of legal relations involving lenders and borrowers: accounting for loans related to promissory notes. Business transactions that correspond to them are reflected through postings:

• Dt 51 (52), Kt 66 (or 67), if we are talking about funds actually accepted;
• Dt 91.2, Kt 66 (or 67) in other cases.

Interest or, conversely, amounts reflecting the fact of a decrease in the value of bills of exchange are taken into account in the same manner as the obligations arising from the company as a result of the issue of securities. The closure of transactions within the framework of the circulation of bills of exchange is carried out in accordance with the notification of the banking organization about the repayment of the debt by recording Dt 66, 67, Kt 62, 76.

If the organization holding the bill returns the funds that were accepted from the bank upon accounting for the decrease in the value of debt obligations due to failure to fulfill the terms of the contract by the original drawer, then posting Dt 66, 67, Kt 50, 51 is applied.

If, as part of the company’s settlements with clients or customers, there are receivables that are secured by bills of exchange, then they should be accounted for as debits of the accounting accounts.

If interrelated business entities are involved in the company’s settlements with banks, bill holders or lenders, then their accounting is kept using accounts 66 or 67 separately.

In the article we will talk about what short-term and long-term loans are, how they differ, and how they are accounted for in accounting. In the article we will get acquainted with two accounts: 66 and 67. Below are the entries for the accounting of loans and borrowings involving accounts 66 and 67.

In the accounting chart of accounts for accounting for short-term loans there is account 66 “Calculations for short-term loans and borrowings”, for accounting for long-term loans account 67 “Calculations for long-term loans and borrowings” is used.

Loans, both short-term and long-term, are issued by credit institutions, that is, banks. They are given for specific purposes, for a limited period, after which the lender undertakes to return the money received.

Video reference “Accounting for short-term loans on account 66”: subaccounts, operations

The video lesson explains in detail how to keep accounting for short-term loans and borrowings on account 66. The training is conducted by the teacher of the “Accounting and Tax Accounting for Dummies” website, chief accountant Gandeva N.V. To watch online, click on the player below ⇓

Accounting for short-term loans

Short-term loans are issued for a period of up to 1 year. The funds received are accounted for on the loan account 66 in correspondence with (if the loan was issued in cash), and (relevant entries D50 K66, D51 K66, D52 K66).

When receiving loans, the organization incurs certain costs. These can be the so-called basic costs, which include interest on the loan, exchange rates, and amount differences in interest. The main costs are included in the composition, while the posting is carried out in accounting D91/2 K66.

In addition to the main expenses, there are also additional expenses associated with obtaining credit money, these include payment for legal and consulting services, copying costs, taxes, examinations, and communication services. These expenses are reflected by posting D91/2 K60.

Repayment of the loan is reflected in the debit of account 66 in correspondence with the accounts, and, depending on how the loan debt is repaid (entries D66 K50, D66 K51, D66 K52).

Accounting for long-term loans

A long-term loan is issued for a period of over 1 year. The funds received, just as in the case of a short-term loan, are accounted for as a credit account. 67 in correspondence with cash accounts. Further, long-term loan accounting can be carried out in two ways:

1. On the account 67 before maturity.
2. On the account 67 until there are 365 days left until maturity. After this, the loan amount is transferred to the account. 66 by posting D67 K66, that is, long-term debt is transferred to short-term debt.

The chosen accounting method must be reflected in the accounting policy order, which can be read about in the article ““.

Postings to accounts 66 and 67

The table below discusses the accounting of credit operations: obtaining long-term and short-term loans and their reflection. ⇓