- overview of classification the accounts of notes payable to deal with how to account for notes payable
an overview of the notes payable in the commodity trading activities and settlement of contract price to commercial bills of exchange occurred by the drawer votes, entrusted payer unconditional payment of the amount determined by the specified date to the payee or holder, including commercial acceptance bills of exchange and bankers' acceptances. Notes payable interest according to whether the band is divided into interest-bearing notes payable without interest notes payable two. The classification commercial acceptance bills and bankers' acceptances
notes payable by the drawer votes, commissioned by the payer in the specified date to pay unconditionally a fixed amount to the payee or bearer bills. Notes payable is entrusted payer written proof of a certain amount of promise to pay a certain period of time. Notes payable in China in the way of commercial bills of exchange settlement.
Commercial bills of exchange, is the payee or payer (or acceptance of the applicant) issued by the acceptor acceptance and endorsement to the payee or the payments of bills at maturity. The
commercial bills, according to the acceptor divided into commercial acceptance bills of exchange and bankers' acceptances. If the acceptor is a bank bill, compared with bankers' acceptances; such as the acceptor of the bills for purchases World Pipe network informed, compared to the commercial acceptance bill. Commercial bills, with or without interest, is divided into interest-bearing notes and non-interest-bearing notes. Notes with interest the press notes that the interest rate on the amount of notes at par plus interest bills, so the expiration time of acceptance, in addition to pay the face amount, but also to pay interest. Not interest-bearing notes paid at face value, maturity, interest provisions of the bills. China used is not interest-bearing notes.
Property management companies out of the acceptance of notes payable should be set World Steel Pipe News , "notes payable" account to be accounted for. Out, acceptance, at par value credited to the lender, maturity commitments, according to the face amount of debit balance in the credit, notes payable amount that has not yet expired. Detailed accounting of bills payable in accordance with its payee's name and collection units set up details, and should be set to cope with notes for future reference book ", a detailed registration of each type of sum of notes payable, numbers, issue date, maturity date, par value contract, transaction number, the name of the payee name or payee unit, and the payment date and amount. Case by case basis when payment is due, in the reference books of cancellation. Notes
in the short term to cope with long-term bills
payable and notes payable issued by the enterprise, and promise to pay a certain amount at a time in the future a written certificate to the holder.
Where the period of one year or an operating period of the notes payable, known as short-term notes payable, are classified as current liabilities; notes payable in the business for more than
period of one year, known as the long-term notes payable, belonging to long-term liabilities.
Short-term notes payable interest-bearing notes and non-rate notes of the points. To cope with the unpaid interest portion
with interest the nominal value of the notes is the discounted value of notes in the balance sheet liabilities in nominal dollars, but they also need to be listed as an alternative current liabilities. Amount with interest payable at maturity of the notes are not notes, issued by such instruments by enterprises for borrowing from banks. In theory, the notes payable should be discounted, according to the present value pricing. However, if short-term notes payable issued by the enterprises in business activities, if the enterprise issued by the business activities of short-term notes payable, apart short hair Nai and the maturity date, the discounted value of the maturity value is very close, according to the important principle, can be slightly negligible, and accounted for at face value. Notes payable issued by the outside business activities, the Notes issued as a result of the borrower, regardless of the long duration in accordance with the present value of credited
Short-term notes payable mainly in two forms: to cope with commercial paper and short-term loans payable notes.
Cope with the commercial paper is committed to pay a fixed payment of bills in the future specific time, the purchase in the normal business activities to suppliers. Compared with accounts payable, to meet the commercial paper payment situation commitments, and thus more legally binding, so when the supplier on the purchase of enterprise credit program is not very understanding or transaction amount is large, In order to reduce the risk often required to buy companies to issue commercial paper. But no matter what kind of notes, usually according to the amount due Nai (in principal) pricing. If it is interest-bearing notes, then at the end of each accounting period, purchases, enterprises should also be provision to meet the interest expense on the notes and interest payable. Accounting procedures, usually just at the end of the year before provision for the year to the end of the outstanding notes on the cumulative cope with interest and interest charges, does not not make provision in each month.
Meet short-term loans, flying is issued by enterprises to borrow short-term loan to the bank notes. The usual practice is that the notes on interest on borrowings by the bank deducted in advance from the loan amount. Flying on the borrower interest deducted in advance from the loan amount by the bank. Reimburse the borrower simply near-bills principal maturity, without having to pay interest on a regular basis. Accounting, bills payable at face value reflects the discounted discounts deducted by the bank is credited to a separate set discounted notes payable "account. Continued in the notes kept during the period to meet the bills discounted as interest expense apportioned installments of a commonly used method is the straight-line method. Notes payable accounting treatment commercial bills after the ticket acceptance, shall be debited to the stock of goods "and" accounts payable "account credit" notes payable "account. Property management enterprise
cases acquired 20 security doors at $ 600 per fan, according to the contract out of the four month interest-free commercial acceptance bill to pay the purchase price. Another former owed the red brick factory payment of $ 4600, now a period of two months interest-free commercial acceptance bill payment. Accounting entries are as follows according to the commercial acceptance bill out:
by:
stock of goods - security doors 12 000 Accounts payable - red brick factory 600
loan: Notes payable 16,600 < BR> 2 months due to the return of the red brick factory payment, proof of payment, for the accounting entries as follows:
by: Notes payable 400 600
loans: bank deposits 4 600
in out and acceptance commercial bills, if you can not be able to pay, should not to issue new notes in the maturity, the notes payable book balance transferred to the accounts payable account, next time the payments and then a different Payment different accounting treatment. Such as the deposit payment is credited to the account of bank deposits; if re-opened notes to the notes payable account is credited. Bankers' acceptances, if the maturity date, the companies are unable to pay the maturity fare, accepting bank ticket unconditional payment to the bearer, the drawer has not yet transferred the amount of the fare paid for the overdue loan processing; and count five ten thousandths per day to take the penalty. Out a bill of exchange due inability to pay bankers' acceptances, and received a bank transfer to the "XX bills of exchange, money payment transferred to the overdue loans to households" certificate, debit notes payable ", credited "Short-term borrowings." To cope with the bills is how to account for notes payable issued by the enterprise, and promised to pay a certain amount to the holder of a written certificate in the short term. In China, the notes payable is used in calculating the corporate merchandise buying and selling activities that occur due to the way of commercial bills of exchange, used to clear claims and liabilities, with the legal effect of commercial bills. Commercial bills in accordance with the different acceptor, can be divided into bankers' acceptances and commercial acceptance bills; commercial bills in accordance with whether the carried interest can be divided into interest-bearing notes payable without interest notes payable two. Commercial bills of the acceptance period is generally not more than six months, whether it is interest-bearing bills or notes with interest is accounted for in general are the face value of notes payable denominated.
Bankers' acceptances acceptor for the Bank. Joint-stock enterprises in the issuance of bankers' acceptances, first held the bills of exchange and the purchase contract to apply for acceptance to the Bank by the Bank agreed to pay the fee, holding the bill of exchange reconciliation payment notice for the procurement of materials and supplies. Before the maturity date, the enterprise funds deposited with the bank, make timely payments to maturity. If the purchases of units of the date of maturity insufficient funds and unable to pay, accepting bank bears the responsibility of the holder unconditionally pay the fare to the payee or the payee of the Discount Bank, the Bank will pay the amount as short-term borrowings, execution deductions and press are subject to penalty. Acceptance bill acceptor of
commercial payer, not by the Bank for acceptance, when the draft is due if the payer are unable to pay the fare, the bank is not liable for the payment, by closing both payer and their own negotiated settlement. At the same time the Bank of the payer paying party a par value, a certain percentage or a certain amount as a starting point of a fine.
Notes payable, accounting, the enterprise should be set, "notes payable" subject. The subject of credit to the registration of the enterprise out of the nominal value of the notes payable, debit registration of the nominal value of the repayment of notes payable, and the ending credit balance to the nominal value of the enterprise's outstanding notes payable. Same time, enterprises should set up the bills payable for future reference book, a detailed registration of each type of notes payable, numbers, date of issue, expiration date, the par value, contract, transaction number, payee's name or unit name, and the payment date and amount and other information. To cope with the maturity paid, shall be promptly canceled. Case by case basis in the reference book
1. Issuance of notes payable help meet the payment of accounts payable.
By: material procurement x × ×
, stock material the × × ×
, inventory of goods × × ×
cope receivable × × ×
, Credit: Notes payable × × ×
. Pay the fee of bankers' acceptances. According to the provisions of the "Enterprise Accounting Standards",
fee charged by banks and other financial institutions as financial costs should be handled therefore:
by: finance charges the × × ×
, loans: bank deposits, × × ×
3. Interest-bearing notes of interest processing.
Interest-bearing notes often marked on the ticket at a certain interest rate, the interest rate used to calculate the interest on notes contained. In addition to the need to repay the face amount of maturity, enterprise, but also need to pay the interest calculated according to the regulations. The interest of
interest = nominal value × interest rate × tenor of the bill
interest-bearing notes are generally one-time payment when due; if the amount of interest, you should calculate this amount of interest expense in the interim period or the end of the year. Interest expense should be credited to the subject of "finance costs".
By: finance charges Credit: × × ×
notes payable × × ×
, if the interest amount is immaterial whether the withholding does not have a significant impact on the accounting statements may be in the maturity repayment of principal included in finance costs and interest payments, disposable.
4. The maturity payment of principal and interest.
By: to cope bills × × ×
, finance charges the × × ×
, loans: bank deposits, × × ×
. Maturity without accounting treatment shall pay.
If due unable to pay the bills is the bankers' acceptances, the bank will fare paid to the holder, the companies produced a short-term borrowing liabilities. Companies should cope with the bills liabilities into short-term borrowing liabilities, and a fine of expenditures as operating expenses. Notes payable × × ×
,
by: Credit: × × by ×
, short-term borrowings: Credit: bank deposits, × × ×
If the business expires unable to pay the operating expenses × × ×
, The notes to the commercial acceptance bill, companies should meet the principal and interest bills into accounts payable, the penalty is the same as operating expenses.
By: cope the × ×
, financial costs, bills × × × ×
Credit: Accounts payable × × ×
, by: operating expenses × × loan ×
, the: bank deposits, × × ×
Meet the bills