Account 66 reflects information on settlements on interest-bearing and interest-free borrowed funds received with a repayment period of less than a year. This period determines the account indicator 66 in the Balance Sheet. Make no mistake!
Account 66 in accounting
66 count accounting These are borrowed funds if, as of the date of preparation of the financial statements, their return is planned no more than 12 months later. Borrowed amounts under account 66 include any attracted financing - monetary and non-monetary.
1. Bank loans:
- issued in money;
- in the form of an overdraft.
- interest-bearing and non-interest-bearing;
- cash and in kind;
- ruble and foreign currency.
3. Loans from the budget.
4. Issued bills with payment:
- upon presentation;
- for a specific date;
- for a certain period from the date of preparation;
- for a certain period from the date of presentation.
5. Bonds:
- interest or discount;
- convertible or non-convertible;
- repayable in one lump sum or in installments.
6. Commodity and commercial loans.
In addition, account 66 in accounting is also needed to calculate interest payable on borrowed amounts.
- Download the form for a certificate confirming the amount of interest.
- Download an example of a form confirming the amount of interest.
Account 66: correspondence
Account 66 is passive. Credit 66 account shows attraction borrowed money and the accrual of interest on them, that is, an increase in debt to counterparties. In debit 66 of the account, entries are made when repaying borrowed financing and upon payment of interest. See table 1 for counting diagram 66.
Table 1. 66 counts
Interest is calculated using the formula:
Let's show calculations for account 66 using a numerical example.
Example 1. 66 count
On March 11, 2018, Symbol LLC received a loan in the amount of 438,000 rubles at 8% per annum with a repayment period of July 31, 2018 and payment of interest upon repayment of the loan. In addition, on May 1, 2018, Symbol repaid an interest-free loan in the amount of 292,000 rubles received on December 1, 2017.
Interest on the loan "Symbol" accrued in the following amounts:
For March – 1920 rubles (438,000 x 8% / 365 x 20);
For April – 2880 rubles (438,000 x 8% / 365 x 30);
For May - 2976 rubles (438,000 x 8% / 365 x 31);
For June - 2880 rubles (438,000 x 8% / 365 x 30);
For July - 2976 rubles (438,000 x 8% / 365 x 31).
For the first half of 2018, account 66 had the following indicators.
1. Balance at the beginning of 2018 – 292,000 rubles.
2. Loan turnover – 451,632 rubles (438,000 rubles + 1920 rubles + 2880 rubles + 2976 rubles + 2880 rubles + 2976 rubles);
3. Debit turnover – 292,000 rubles;
4. Balance as of June 30, 2018 – 451,632 rubles.
Chart of accounts: 66
Account 66: subaccounts
Since account 66 contains different kinds borrowed amounts, it is more convenient to reflect them in subaccounts. For example, as shown in Table 3.
Table 3. Account 66: subaccounts
| Subaccount numbering | Subaccount name |
| 66.01 | Ruble loan amount |
| 66.02 | Interest on a ruble loan |
| 66.03 | Ruble loan amount |
| 66.04 | Interest on a ruble loan |
| 66.05 | Par value of interest-bearing bonds |
| 66.06 | Interest on bonds |
| 66.07 | Foreign currency loan amount |
| 66.08 | Interest on foreign currency loan |
| 66.09 | Foreign currency loan amount |
| 66.10 | Interest on foreign currency loan |
| 66.11 | Denomination of foreign currency bonds |
In this case, account 66.03 in the accounting records will reflect the ruble loans received, and account 66.04 in the accounting records will show interest on the ruble loans received.
Attached files
- Form of certificate confirming the amount of interest.doc
- An example of a certificate confirming the amount of interest.doc
- Key rate values.doc
In practice, it is short-term loans and borrowings that are most common. Organizations borrow them from credit institutions for temporary needs and return them within a year. This money is usually used to purchase material assets, goods, upon sale of which the invested money will quickly return as part of the proceeds from the sale, and therefore it will be possible to repay the debt to the bank. Credit money can be received both in rubles and in foreign currency. In the latter case, in order to reflect them on the accounting account, it is necessary to convert the currency into rubles at the rate of the Central Bank of the Russian Federation valid on the date of receipt of the money - crediting the currency to the foreign exchange account. Account 66 “Settlements for short-term loans and borrowings” is passive, intended to account for the liability of the enterprise. Read what a passive account is and what its features are here.
The accounting (discount) operation of bills and other debt obligations is closed on the basis of a notification from the credit institution about payment by reflecting the amount of the bill in the debit of account 66 “Settlements on short-term loans and borrowings” and the credit of the corresponding accounts receivable. When returned by the organization - the bill holder Money received from a credit institution as a result of discounting (discounting) bills or other debt obligations due to failure to comply with fixed time the drawer or other payer of the bill makes an entry in the debit of account 66 “Settlements for short-term credits and borrowings” in correspondence with the cash accounts.
Short-term and long-term loans - accounting in accounting
registration and summarization of information in monetary terms about property, liabilities...www.bibliotekar.ru/kodex-10/1.htm ACCOUNTING. The assessment of property and liabilities is carried out... The assessment of property and liabilities is carried out by the organization to reflect them in accounting and financial statements in monetary terms.
…www.bibliotekar.ru/kodex-10/11.htm Accounting for transactions with bills of exchange. Calculation of accounting interest...
Account 67 in accounting: calculations for long-term loans and borrowings
All loans are issued by banks only for certain purposes on the terms of repayment for a certain period; they can be bank or commercial. Bank loan is a cash loan that is provided by a credit institution for the production needs of an organization; it can be long-term or short-term.
A short-term loan is a loan for a period of no more than one year; it is the main source of additional funds for an organization for temporary needs. Borrowed short-term money is used to temporarily replenish basic and working capital, for inventory items, for major renovation working capital and fixed assets, as well as for other needs.
For the purpose of accounting for short-term loans in the accounting department, accounting account 66 “Settlements for short-term loans and borrowings” is intended. Account 66 is passive.
Accounting for a long-term loan received from a bank LLC “Vesna” received a loan from the bank OJSC “Osen” for 3 years in the amount of 2,500,000 rubles. Principal and interest are calculated monthly in equal installments at a rate of 13.5% per annum.
Issue of a bond with a value higher than the nominal value Let's say an organization placed a bond on the secondary market worth 16,000 rubles, par value - 10,000 rubles. with a maturity of 24 months.
What is reflected in account 67 in accounting
Attention: Postings to account 67:
- D50 (51,52,55) K67 – a long-term cash loan was received (to settlement, foreign currency, special accounts).
- D91/2 K67 – interest has been accrued in accordance with the loan agreement.
- D67 K50 (51, 52, 55) – the long-term bank loan is repaid.
- D67 K91/1 – positive exchange rate difference was accrued on interest in foreign currency.
- D91/2 K67 – negative exchange rate difference was accrued on interest in foreign currency.
The last two entries relate to long-term loans in foreign currency. It is worth noting here that the organization has the right to take into account long-term loans in account 67 until it is fully repaid.
In addition, the organization can also transfer the loan from the category of long-term to short-term at the moment when no more than one year remains until its maturity.
66 and 67 accounting accounts
Raising funds on a long-term basis is carried out mainly for investment, modernization, construction or acquisition of fixed assets. Amounts, interest and penalties on them are reflected in account 67, the rules for maintaining which were discussed in detail in the article. 66 and 67 accounting accounts If a bill of exchange is payable in another bank, then in addition to the amount of interest, accounting fees will be charged additional fee for translation, the amount of which is established according to ...www.bibliotekar.ru/bank-6/18.htm ACCOUNTING.
Postings to account 66 - settlements for short-term loans and borrowings
Operations by commodity credit reflected in a separate sub-account to account 66 “Settlements for short-term loans and borrowings”. Separately, on account 66 “Settlements for short-term loans and borrowings,” agricultural organizations take into account operations on loans, the payment of interest on which is subsidized from the budget.
Getting a loan in commercial bank reflected in as usual on the debit of accounts for cash accounting and the credit of account 66 “Settlements for short-term loans and borrowings”. Interest due on loans received is debited to account 91 “Other income and expenses” from the credit of account 66 “Settlements on short-term loans and borrowings” (in in full). After repaying the debt on these loans and borrowings, subsidies are credited to the current account, account 51 “Current account” is debited and account 86 “Targeted financing” is credited.
Account 66 “settlements on short-term loans and borrowings”
Account 67 of accounting is a passive account “Calculations for long-term loans and loans”, accumulates information on the status and movement of long-term loans and borrowings received by the enterprise for a period of more than one year. Using standard wiring and practical examples Let's study the specifics of using account 67, including the reflection in the transactions of the operation of issuing a bond with a value higher than the nominal value.
- 1 Account 67 in accounting
- 2 Typical wiring on count 67
- 3 Examples of transactions with transactions on account 67
- 3.1 Example 1. Accounting for a long-term loan received from a bank
- 3.2 Example 2.
Issue of a bond with a value greater than its face value
Account 67 in accounting This accounting account is passive and its increase is reflected as a credit, and its decrease as a debit.
Account 67 “settlements for long-term loans and borrowings”
It exists to summarize information about the movement and availability of short-term loans and credits received by the organization. The loan can be obtained in both domestic and foreign currency. In the latter case, the currency is converted into rubles at the exchange rate of the Central Bank of the Russian Federation; the conversion is made at the time the funds are credited to the foreign currency account. Features of currency accounting can be read here. Exchange differences are included in operating expenses.
Interest accrued for payment according to the loan agreement is also taken into account as part of operating expenses. In addition, in the process of applying for a loan, the organization may bear a number of additional expenses, such as payment for consulting fees, legal services, examination services, communication services and others. These expenses are also recorded in account 91 “Other income and expenses”.
67 accounting account
Accounting for short-term and long-term loans and borrowings (account 66 and 67)
Account 67 “Settlements for long-term loans and borrowings
The methodology for recording transactions on these accounts is similar, and their division is associated only with the classification of received loans and borrowings depending on the repayment period calculated from reporting date, as short-term (for a period of no more than 12 months from the reporting date) or long-term (for a period of more than 12 months from the reporting date).
The amounts of loans and borrowings received by the organization are reflected in the credit of accounts 66 “Settlements for short-term loans and borrowings” and 67 “Settlements for long-term loans and borrowings” in correspondence with the debit of accounts accounting for funds received, for example, accounts 50 “Cash”, 51 “ Current accounts", 52 " Currency accounts", 55 "Special bank accounts", 60 "Settlements with suppliers and contractors", etc.
Loans raised by issuing and placing bonds are accounted for in accounts 66 “Settlements for short-term loans and borrowings” and 67 “Settlements for long-term loans and borrowings” separately. If bonds are placed at a price exceeding their face value, then accounting entries are reflected in the debit of account 51 “Current accounts”, etc.
Account 66 "Settlements for short-term loans and borrowings"
in correspondence with accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” (at the par value of bonds) and 98 “Deferred income” (for the amount of the excess of the bond placement price over their par value). The amount allocated to account 98 “Deferred income” is written off evenly during the circulation period of the bonds to account 91 “Other income and expenses”. If bonds are placed at a price below their par value, then the difference between the placement price and the par value of the bonds is added evenly during the period of circulation of the bonds from the credit of accounts 66 “Calculations for short-term credits and borrowings”, 67 “Calculations for long-term credits and borrowings” to the debit account 91 “Other income and expenses”.
Example 13.4. On January 1, 2014, the organization issued 1,000 bonds with a par value of 1,000 rubles. for each with a maturity date of two years. placement of bonds was carried out according to their market value– 1,024 rub. for a bond with payment by non-cash funds.
Operations for the placement of bonds will be reflected in the accounting accounts as follows:
Debit of account 51 “Current accounts” 1,024,000
Credit to account 67 “Settlements for long-term loans and borrowings” 1,000,000
Credit to account 98 “Deferred income” 24,000
2) On January 31, 2014, the income of the reporting period included the share of income from future periods (24,000 rubles / 24 months = 1,000 rubles):
Debit of account 98 “Deferred income” 1,000
Credit to account 91 “Other income and expenses”,
subaccount 1 “Other income” 1,000
Interest payable on loans and borrowings received is reflected in the credit of accounts 66 “Settlements on short-term loans and borrowings”, 67 “Settlements on long-term loans and borrowings” in correspondence with the debit of account 91 “Other income and expenses”. Accrued interest amounts are accounted for separately.
Repayment of loans and borrowings and interest accrued on them is reflected in accounting by posting:
Debit of account 66 “Settlements for short-term loans and borrowings”,
Debit account 67 “Settlements for long-term loans and borrowings” and
Credit account 51 “Current accounts”,
Account credit 50 “Cash”,
Credit account 52 “Currency account”, etc.
Example 13.5. On June 11, 2014, the organization received a short-term loan in the amount of RUB 100,000. for a period of one month at 19% per annum. Interest is calculated starting from the day the loan is received and is paid simultaneously with the repayment of the loan. The described transactions will be reflected in accounting as follows:
Debit account 51 “Current accounts” 100,000
Credit to account 66 “Settlements for short-term loans and borrowings” 100,000
subaccount 2 “Other expenses” 989.04
Credit to account 66 “Settlements for short-term loans and borrowings” 989.04
3) On July 12, 2014, interest was accrued for July 2014, payable at the time of loan repayment = RUB 624.66:
Debit account 91 “Other income and expenses”,
subaccount 2 “Other expenses” 624.66
Credit to account 66 “Settlements for short-term loans and borrowings” 624.66
4) On July 12, 2014, funds were transferred from the organization’s current account to repay the loan debt and interest due:
Debit of account 66 “Settlements for short-term loans and borrowings” 101,613.70
Credit account 51 “Current accounts” 101,613.70
In the passive balance sheet information is disclosed on the balances of outstanding borrowed obligations, taking into account accrued outstanding interest, divided into long-term and short-term parts of obligations, and in the Profit and Loss Statement, as a part of other income and expenses, a separate item reflects the amount of interest accrued for the reporting period.
The second group of obligations of the organization is involved funds represented by the organization's accounts payable to legal and individuals, budget, off-budget funds etc., formed within the framework of normal economic activity organizations. Although accounts payable management is also a tool financial policy organization, as an object of accounting, it arises as a result of the application of the assumption of temporary certainty of the facts of economic activity when maintaining accounting records, in which business transactions are reflected at the time of their actual completion, regardless of the fact of cash flows associated with these transactions.
The main types of accounts payable of an organization are:
∙ accounts payable to suppliers and contractors for goods supplied, services rendered, work performed (accounting is kept in account 60 “Settlements with suppliers and contractors”);
∙ advances received from buyers and customers against future deliveries of products, goods, works, services (accounting is kept on account 62 “Settlements with buyers and customers”);
∙ accounts payable to the budget for settlements of taxes and duties (accounting is kept on account 68 “Calculations for taxes and duties”);
∙ accounts payable to state extra-budgetary funds for contributions to compulsory social insurance (accounting is kept on account 69 “Calculations for social insurance and provision");
∙ accounts payable to accountable persons for reimbursement of expenses incurred for the benefit of the organization (accounting is kept on account 71 “Settlements with accountable persons”;
∙ accounts payable to the owners for the payment of dividends (accounting is kept on account 75 “Settlements with founders”);
∙ accounts payable to other creditors (accounts are kept in accounts 76 “Settlements with various debtors and creditors”, 73 “Settlements with personnel for other operations”, etc.).
All of the listed settlement accounts are active-passive with an expanded balance, therefore, regardless of the nature and occurrence of the grounds for settlement relations, all accounts have the same structure.
Account 67 “Settlements for long-term loans and borrowings” is used legal entities to display data on mutual settlements for borrowed funds received for use by the company for periods of more than 12 months
Account 67 in accounting is necessary for generalization and subsequent analysis of information on ongoing mutual settlements loan agreements(loan agreements) and interest accrued for the use of borrowed money. Data on mutual settlements for long-term agreements over 12 months is displayed here.
Attention! For accounting of short-term loan agreements (less than 12 months), account 66 is used.
Count 67 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 representing a single financial statements Based on the results of activities, mutual settlements made for ongoing borrowings are displayed separately.
Additional borrowing can be provided by the company through the issue and subsequent placement of bonds.
Payments for loans and borrowings (accounts 66 and 67)
These transactions are accounted for separately on account 67. 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 Kt67 to Dt91.
Also, if necessary, a sub-account can be opened for account 67 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 more than 12 months (the face value of the transferred bill is taken into account according to Kt67). Completion of the bill accounting operation is carried out on the basis of the received notification from the bank (other financial organization) by displaying the amount of the bill according to Dt67 in correspondence with accounts receivable. Operations for the return of funds 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 Dt67.
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 67 is carried out depending on the type of borrowing, by counterparty creditors providing funds (for example, banks, financial organizations, large suppliers). Bill settlements are analyzed by credit institutions that accepted the bill, counterparties who issued the bill, and separately for each bill.
Regulatory regulation
Using the account 67 to display information on mutual settlements for borrowed funds provided for use by companies under agreements with periods of more 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 67 in accounting - common entries for business transactions
- Receiving funds under long-term loan agreements
Dt50,51,52,55 Kt67 - received cash or wire transfer
Dt10.41 Kt67 - capitalization of inventory items, goods under a short-term loan agreement
Dt60 Kt67 - transfer of existing debts to suppliers into a loan from them, transfer of received loans and credits to cover accounts payable
- Displaying accrued interest for using money
- Write-off of outstanding overdue accounts payable
- 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.
- Repayment of loans and credits
Dt67 Kt50,51,52,55 - cash withdrawal from the cash register or non-cash transfer
Dt67 Kt62 - repayment of mutual claims
Elena Petrenko, 2017-03-20
Questions and answers on the topic
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Reference materials on the topic
Loans by type are divided into short-term and long-term. When accounting for them, different accounts are involved.
Accounting for short-term loans
Short-term loans are available for a period of up to 12 months. Used for accounting. The receipt of a short-term loan is reflected in the debit of the account and credit 66.
If it is necessary to pay interest (according to a schedule or one time in one amount), then they are first calculated based on the interest rate specified in the agreement, and then accrued by posting:
- Debit 66 Credit 91.2.
The transfer of interest is made by writing:
- Debit 66 Credit.
It is necessary to keep analytical records for each short-term loan received.
Example of a short-term loan:
The organization received a short-term loan in the amount of 198,000 rubles. for 8 months. The interest rate is 16% per annum.
Postings:
| Account Dt | Kt account | Wiring description | Transaction amount | A document base |
| 66 | Loan received | 198 000 | Bank statement | |
| 91.2 | 66 | Interest accrued on the loan | 120 | |
| 66 | Interest transferred | 120 | Payment order ref. | |
| 66 | Loan repayment | 198 000 | Payment order ref. |
For the party providing the loan, the only thing that matters is whether there is interest on it. The borrower does not divide it into long-term or short-term.
Accounting for long-term loans
Long-term loans differ from short-term loans in that their term exceeds one year. It is intended for their accounting.
Receipt of a loan is reflected by:
- account debit and credit 67.
Interest calculation – by recording:
- Debit 67 Credit 91.2,
And payment:
- Debit 67 Credit.
It is necessary to maintain analytical records for each of the long-term loans received.
The organization received a loan for months at 12% per annum in the amount of 1,540,000 rubles.
Postings:
| Account Dt | Kt account | Wiring description | Transaction amount | A document base |
| 67 | Loan received | 1 540 000 | Bank statement | |
| 91.2 | 66 | Interest accrued on the loan | 431 200 | Loan agreementAccounting certificate |
| 67 | The monthly transfer amount has been sent to the borrower's account | 15 400 | Payment order ref. | |
| 67 | Loan repayment | 1 540 000 | Payment order ref. |
Taxation
From a tax point of view, receiving a loan is not a profit of the organization, and is also not subject to VAT. Only if the loan was received in cash. When borrowed funds are expressed in property, VAT is charged on its value.
Interest paid for using a loan, on the contrary, is included in the tax base for profits and VAT, and for entrepreneurs - in personal income tax. They reduce profit as part of non-operating expenses, and the amount of VAT included as part of interest can be deducted by presenting invoices.
The personal income tax base for entrepreneurs is reduced by the amount of interest paid at the end of the year.
Account 66 “Settlements for short-term loans and borrowings” is intended to account for only those credit funds, which were taken at a certain percentage with the condition that they mandatory repayment within a period not exceeding one year. Depending on how the loan was obtained, accounting entries may differ.
Account 66: characteristics
Whether an account belongs to a balance sheet category can be determined by the objects whose value is accumulated on it. Active accounts accumulate amounts of the enterprise's assets, that is, they reflect what belongs to the organization. Passive accounts are needed to account for liabilities, that is, the sources of formation of the company's assets. Separate category– active-passive accounts – they have the characteristics of the two previous varieties, depending on what balance remains on them, the account acquires the features of an active or passive one.
66 account – active or passive?
The answer is clear - passive, which is confirmed by the Chart of Accounts. When a company borrows money, the loan amount is recorded in credit account 66. Accrued interest payments the body of the loan is also summed up at the credit value of 66 accounts. Correspondence is drawn up in combination with active debit accounts - 50, 52, 51, 60, 55 (depending on where the borrowed funds were received).
Analytics on short-term loans is carried out in the context of credit and borrowed funds, by organizations that issued the loan. Account 66 in accounting is closed by debit turnover upon repayment of the entire loan amount with simultaneous posting of the corresponding amounts to the accounts for accounting monetary assets. If the loan is overdue, such loans are accounted for separately from others. The accrued interest on debts is recorded in the same way.
Account 66: entries with options for obtaining a loan
When drawing up transactions involving borrowed funds, you should focus on the timing of the loan and the method of its execution. With the traditional option of transferring the loan amount to the current account, correspondence Dt 51, 50, 55, 52 - Kt 66 is generated. If the lender pays debts to counterparties for the organization, providing a short-term loan in this form, the posting will look like this: Dt 60, 76 - Kt 66.
Credit 66 of the account shows not only the amount of a regular loan, but also the cost of the bonds sold. When concluding each transaction for the sale of bond securities, an entry is made - Dt 50, 51 Kt 66. Possible nuances:
- the sale of bonds was carried out at a price that differed from the nominal value in the direction of overestimation; for the amount of the difference between the two types of prices, the entry Dt 50, 51 Kt 98.01 is drawn up. The next step will be to assign the amount of discrepancy to income Dt 98.01 Kt 91.01.
- when the cost of bonds under the terms of the transaction is below par as they circulate securities the difference will be made by correspondence Dt 91.02 Kt 66.
Account 66 in accounting is involved in postings when:
- in every reporting period interest is accrued Dt 91.02 Kt 66 (which follows from the norms of PBU 15/01).
- the loan is repaid from the current account Dt 66 Kt 51.
- a bill of exchange loan is issued - the amount of funds actually received is reflected in Dt 51 Kt 66, the difference between the amount of funds and the loan Dt 91.02 Kt 66.
Account 66 in the balance will be reflected in two lines at once. To compile the report, you will need to divide the account balance into two categories:
- Loan size;
- The amount of accrued interest obligations on the loan.
Account loan balance 66 in the amount of the loan body is recorded in the balance sheet in line 1510, and accrued interest is reflected in line 1520.
An example of applying for a loan and calculating interest on it
The company issued and received a loan for 12 months in the amount of 400,000 rubles at interest rate 20% with condition monthly accrual percent. In accounting, the situation will be reflected as follows:
- Dt 51 - Kt 66 Loan transfer to account – 400,000.
- Dt 91.02 - Kt 66 Interest accrual for 1 month 6666.67 (400,000 x 20%: 12).
- The previous posting is repeated throughout the loan term.
- Dt 66 – Kt 51 Repayment of the loan and interest on it 480,000 (400,000 + 6666.67 x 12).
To provide efficient work enterprises need to have working capital stock. Companies often resort to raising capital from outside. This is not always due to a lack of own working capital; sometimes it is advantageous to use borrowed capital rather than your own.
You can raise funds for the needs of the enterprise through loans. A loan is an amount of borrowed capital received on terms of urgency and repayment. They come in three types according to the repayment period: short-term (up to a year), medium-term (1-6 years), long-term (more than 6 years).
Short-term funds are most often attracted for the current needs of the enterprise to maintain the circulation of working capital. By issuing bills of exchange, you can pay for goods shipped or services provided. Funds can be purchased in national or foreign currency.
Amounts of different currency categories are recorded separately. Operations to attract short-term loans are subject to accounting and are displayed on Account 66 “Short-term loans and borrowings”.
Legislative framework and analytical monitoring
Regulatory regulation of the reflection of contracts for a period of up to 12 months is carried out on the basis of Orders and Instructions of the Ministry of Finance and Central Bank RF. Control of account information is carried out separately for each type of loan, for organizations that provided loans (banks, credit organizations, suppliers). If bills of exchange have been issued, monitoring is carried out for each of them separately.
Count 66 is in section of the Chart of Accounts No. 6 “Calculations”. Used to summarize information and control transactions on short-term loans. Whether an account in the balance sheet is assigned to the active or passive part can be determined by the transactions that are carried out on it.
On active reflects what belongs to the company, and passive— what assets are formed from. Based on this, we can conclude that the account is passive and the amounts on it are reflected in section 5 of the balance sheet.
At the end of each reporting period, it is not subject to closure if there is a credit balance. Maintenance continues until the balance on it is equal to zero.
Debit and credit
Debit 66 reflects transactions to repay amounts under contracts with a maturity of up to 12 months. The loan shows transactions involving the receipt of short-term loan amounts by the company.
Depending on where the assets for repaying loans come from, it can work on a debit basis in conjunction with accounts 55, 52, 50, 51. To clearly separate the sources of loans, debit entries 62, 76 are used. For analytics of write-off of interest on a loan, the difference the cost of more money or exchange rate differences, account 91 is used.
The loan corresponds with accounts depending on where the borrowed funds were directed: to money(07, 08, 11, 10,), for quickly salable assets (50, 55, 52, 51), settlements with counterparties (60.76), replenishment of reserve capital (82), etc.
Balance
The balance of “Short-term loans and credits” displays the amount of debt the company owes to creditors. During the reporting period, if there is movement in the account, then the debit and credit will reflect the amounts of funds received and repaid.
The opening balance may be zero, which means that the company has no borrowed funds. If the amount is indicated in the opening balance, then it follows that the company has not repaid the loan. Although the term of contracts is 12 months, there are frequent cases of credit balances.
This balance will continue until the loan is repaid. To disclose information on transactions, a balance sheet is compiled.
Main subaccounts
Analytical accounting for account 66 is maintained strictly according to subaccounts. This is due to the fact that separate records must be kept for each type of loan. Below are the most common ones that can be opened using account 66.
66.01 – short-term loans. This subaccount reflects the amounts borrowed by the enterprise. By debit, it corresponds with accounts 50, 51, 52, 55, etc. By credit, entries are possible with 55, 51, etc. On a subaccount 66.02 accrued interest on them is reflected.
66.03 – short-term loans. It shows the funds raised by issuing promissory notes. Works in conjunction with debits from 51, 91, etc. When repaying a bill, it works with the accounts on which it is reflected accounts receivable. On 66.04 interest on bills of exchange and transactions related to cash accounts are reflected.
If the organization received funds in foreign currency, then the following amounts are reflected:
- 66.21 – operations on foreign currency loans;
- 66.22 – interest on foreign currency loans;
- 66.23 – transactions on loans in foreign currency
- 66.24 - interest on them.
Posting examples
Example 1. Obtaining borrowed funds. The enterprise LLC "Manufactura" received the amount of 500,000 rubles. Interest is calculated monthly - 20%. The loan term is 12 months. This situation Accounting will look like this:
- Dt 51 Kt 66 (66.01)– transfer of the amount received—RUB 500,000.
- Dt 91.01 Kt 66 (66.02)– interest for use per month – 8333 rubles. This posting is carried out every month until the amount received is paid in full.
After closing the loan agreement, a posting is made Dt 66 Kt 51 for a body amount of 500,000 rubles. and 100,000 rub. by percentage.
Example 2. Reflection of positive exchange rate differences. Veterok LLC received a loan in US dollars. Borrowing amount – 3000 dollars. The contract term is 2 months at 8% monthly. The rate on the date of receipt is 55.01, in the first month - 54.86, in the second - 54.43. Payments are made in rubles.
The following transactions were carried out:
- Dt 51 KT 66 (66.21)— 55.01 * 3000 = 165030 rub.
- Dt 91 Kt 66 (66.22)— 3000 * 8% / 2 = 120 * 54.86 = 6583.2 rub.
- Dt 91.01 Kt 66 — 225.
- Dt 91 Kt 66 (66.22) — 120 * 54,43 = 6531,6.
- Dt 91.01 Kt 66 — 870.
- Dt 66 Kt 51 — 177274,8.
IN in this case The exchange rate difference was 1095 rubles. and was included in the item non-operating income.
Example 3. Reflection of bond issues on the primary market. Ajax LLC issued bonds on the primary market. The nominal value of the bond is 20 rubles. The price for the first placement is 100% of the amount. It is reflected in the following form in accounting: Dt 51 Kt 66– 20 rub.
If the price for the first placement is less or more than the face value, then such a difference is reflected in sets 97 and 98, respectively.
Example 4. Issue of bonds on the secondary market. Ajax LLC sells bonds using the secondary market, costing 45 rubles. Their denomination is 20 rubles. The placement period is 1 year.
- Dt 51 Kt 66– 20 rub.
- Dt 51 Kt 98– 20 rub.
- Dt 98 Kt 91.1– 2 rub. 8 kopecks (every month until the expiration of the placement period).
If the value of the bond is below par, then the difference is additionally charged to the debit of account 91 throughout the entire placement period.
Example 5. Issue of bonds with yield. Ajax LLC issued bonds with a nominal value of 50 rubles. Payments are made twice a year. Profitability - 25%. Payments on coupon income - once a year.
We post monthly: Dt 91 Kt 66– 12 rub. 50 kopecks
We charge coupon income 1 time per year: Dt 66 Kt 51– 12 rub. 50 kopecks.
Example 6. Purchasing shares using bonds. If bonds were issued joint stock company and were not repaid on time, then the JSC may offer to become a member of the founders in exchange for repayment (exchange of bonds for shares).
Ajax LLC issued bonds in the amount of 40 rubles. They were not repaid on time. The bondholder was invited to join the board of shareholders.
- Dt 51 Kt 66 – 40.
- Dt 66 Kt 75 – 40.
Example 7. Inclusion of interest in the cost of equipment. Brik LLC received a loan for intended use in the amount of 400,000 rubles. Equipment was purchased with this money. Repayment period - 1 month. The interest is calculated monthly - 10%. Attributing interest to the cost of equipment will look like this: Dt 08 Kt 66– 40,000 rub.
Example 8. Repaying debt by shipping materials. Mikhelson LLC received 100,000 from Trading LLC. The refund period is 1 month. The amount for using money is 12,000 rubles. The refund was not made on time. It was decided to ship materials for this amount: Dt 66 Kt 10.1– 112,000 rub.
Raising funds from outside allows enterprises to obtain quickly salable assets for current needs and pay for goods or services necessary for normal life. This great tool for effective business. Account 66 characterizes the solvency of the enterprise when conducting audits in order to obtain funds for a longer period.
A video lesson on account 66 in accounting is presented below.