Account 67 "Settlements for long-term loans and borrowings"

Account 67 is intended to collect information about loans issued for a period of more than 1 year. It contains detailed information on the amounts provided, accrued interest and repayment process. long term duties may arise in different ways: when issuing bonds, applying for a loan or loan, issuing bills. Each of the situations finds its place on account 67. Consider the types of long-term obligations and the organization of their accounting.

Types of borrowed funds

Legislation provides for two methods of legal registration of loans granted. This is a loan agreement and a loan agreement. At their conclusion, two parties participate - the lender and the borrower. A legally recorded transaction is concluded, according to which the lender provides the borrower with a certain amount of material assets for a specified period. Upon its expiration, the borrower undertakes to return the original amount of funds provided and to pay interest on interest (if this is stipulated by the contract). After the transfer of values ​​from the lender to the borrower, the contract is considered active.

Depending on the terms of the contract and the categories of persons who take part in it, there are two main types of borrowed funds: loans and borrowings. Together, they form one of the most important articles in the formation of enterprise sources. Borrowed funds On a par with their own, they significantly affect the welfare and development of the economic activity of a legal entity.

Types of loans

Account 67 contains information about different types of borrowed funds. The only thing that unites them is the commitment period, which is at least 12 months from the reporting date. Loans may take the form of trust funds, bills or bonds. The main difference between this method of attracting assets is that the bank cannot act as a lender. A loan is a legally executed transaction, according to which the parties agree on the transfer of funds or property to the property on the terms of return with payment of interest for use, or without them. Such an agreement can be concluded by individuals and legal entities, with the exception of, as already mentioned, banks. One way to attract loans is to issue securities (bills, bonds, stocks).

A loan is a relationship between the parties, in which a transfer of funds in debt takes place on the terms of urgency, payment and repayment. The procedure for granting and repaying loans is regulated by law. The rights and obligations of the parties are specified in the loan agreement. Account 67 contains information on long-term loans and interest on them.

Account Specifications 67

This account is included in section VI of the Model Plan, which contains settlement accounts groups. They are designed to characterize relationships with various debtors and creditors. In a modern economy, it is difficult for an average enterprise to do without borrowing funds. Often this step becomes a “breakthrough” in the development of entrepreneurship.

Account 66 and 67 are created just for the accounting of operations on loans and credits issued to the company. The organization of accounting for them is similar, but has one significant difference - the term of the relationship between the lender and the borrower. Account 66 describes the parties ’relations on short-term loans, that is, those that last less than 12 months. Account 67 is intended to account for longer transactions occurring over 12 months or more.

It has a passive structure, becauseaccount balances at the end of the month are reflected in the composition of the enterprise sources. On credit, there is an increase in borrowed funds (growth in accounts payable), and on debit, a decrease in debt.

Analytical accounting

Account 67 combines a lot of information: the amount of loans by type, amount of accrued interest, penalties for late payments. In order to avoid confusion, it is necessary not only to distinguish different types of long-term liabilities from each other, but also to single out each creditor separately. The company, in accordance with the recommendations of the accounting policy for the organization of analytical accounting for account 67, can open the following sub-accounts:

• 67/1 "Long-term loans";
• account 67/2 “Long-term loans”;
• 67/3 “Interest on payment of loans and credits”;
• 67/4 “Penalties and interest on the payment of loans and borrowings”;
• 67/5 "Overdue loans and borrowings";
• 67/6 “Loans for the issue of securities”;
• 67/7 "Loans and loans for employees."

The data are reflected in the consolidated statements, with the help of which the accuracy of analytical accounting is checked.

Debit Operations

Postings made to the debit of account 67 mean a decrease in accounts payable for long-term loans. In this case, several scenarios are possible:

1. Repayment of a loan (loan) by transferring funds. Account 51, 52, 55 will enter into the relationship.
2. Completion of obligations after set-off of counterclaims of uniform requirements (Dt 67 Kt 62/76).
3. Transfer of long-term debt to short-term if less than 365 days are left before its repayment (Dt 67 Kt 66).
4. Crediting of the outstanding long-term obligation after the expiration of the limitation period to other income (Dt 67 Kt 91.1).
5. Transfer of positive exchange differences on a long-term loan or loan in foreign currency to other income.

Thus, the amounts indicated in the debit of account 67 always mean a decrease in the amount of debt on a long-term loan or credit.

Loan operations

Credit 67 accounts shows the amount of debt on loans issued for a period of more than 1 year. Particular attention should be paid to the compilation of transactions for the receipt of amounts or property in accordance with a loan (credit) agreement. Regardless of the purpose of registration, the amount is indicated in the credit of the account 67. But with the definition of the offsetting account is somewhat more complicated. Amounts must be credited to the asset account, which are directly related to the loan or credit.

Consider typical cases:

• a loan for the purpose of acquiring property or starting construction is reflected in debit of account 08; at the same time, the costs associated with obtaining a loan (loan) and its use are attributed either to account 91.2 or to the initial cost of fixed assets (if depreciation is charged on them and additional conditions are met);
• if a loan is provided in the form of property, then its amount shall be entered in the debit of accounts for the accounting of such property (10, 11, 41);
• cash and non-cash funds received in connection with the execution of a long-term loan are indicated in the debit of accounts of section V (50, 51, 52, 55);
• if a loan or a loan is issued to cover other obligations, the amounts are credited to these settlement accounts (60, 68, 76);
• expenses related to the content of the loan (loan) and the imposition of penalties, percentages relate to other expenses;
• Negative foreign exchange gains on foreign currency loans and borrowings also relate to operating expenses.

Bond issue

Bonding is a common way to get long-term loans. Account 67 for such purposes contains subaccount 67.6, which reflects information on the issue of securities. Bonds can be placed on the market at a higher than their nominal value, or, conversely, at a lower price. In the first case, the accountant fixes the nominal value on account 67, and writes off the excess amount to deferred income (credit of account 98). The current account usually corresponds to them.

In the case of sale of bonds at a lower price (with a discount), the difference is evenly and gradually accrued during their circulation from the sums of other income. Regarding this situation, an enterprise may prescribe in the accounting policy a clause according to which the discount is preliminarily taken into account in future expenses (debit 97). And then the amounts are gradually written off to other expenses in the debit of account 91.2.

The interest that the issuer undertakes to pay to the holders of securities is shown separately in a separate subaccount and includes the amounts in the number of operating expenses (account 91.2). Or they are taken into account like the previous case in the composition deferred expenses with gradual debiting to account 91.2.

Bank loans

Account 67.1 contains information about issued long-term loans. Upon receipt of funds, the amounts are credited to 67.1 and the debit of those accounts where they were sent. The transactions describing this operation are as follows:

• Dt 50–55 Ct 67.1 - received / credited a loan.
• Dt 60 Kt 67.1 - the debt to suppliers is repaid at the expense of the loan, or the loan is directed to prepayment to the supplier.
• Dt 68 Kt 67.1 - debt to the budget is covered by credit.
• Dt 76 Kt 67.1 - the debt to the other creditor is repaid due to the loan.

The long-term loan is repaid (account 67) with even simpler entries. For this, the account is debited in correspondence with cash accounts (51–55). Interest for credit is calculated using account 91.2, and payment is made in the same manner as repayment of a debt.

Making a loan for staff

Loans issued for workers for the construction of housing and other needs are reflected in a separate subaccount (in the conditions of this article 67.7). The organization writes the received amounts on credit 67.7 in correspondence with cash accounts. After issuing a loan to personnel, the posting is Dt 73 Kt 51 (50). Funds contributed by an employee to pay off debts are recorded in debit 73. The company “closes” the loan by posting Dt 67.7 Kt 51.

The capital of any enterprise is nothing but a combination of attracted and own funds. The implementation of effective economic activity is almost impossible without loans that contribute to the development of the enterprise. Fundraising on a long-term basis is mainly for investment, modernization, construction or the acquisition of fixed assets. Amounts, interest and penalties on them are reflected in account 67, the rules of which were discussed in detail in the article.