Accounting processing for writing off loan loss provisions:

The accounting entries when writing off loan loss provisions are:

Debit: Loan loss provisions

Loan: Overdue loan - overdue loan account of ×× unit

Loan loss provisions that have been confirmed and written off, the amount recovered in subsequent years will increase the loss provision, and the accounting entries are: :

Debit: overdue loan - overdue loan account of ×× unit

Loan: loan loss provision

should be recovered and should be in the deposit account of the borrowing unit To withhold overdue loans, the accounting entries are as follows:

Debit: current deposit - deposit account of ×× unit

Loan: overdue loan - overdue loan account of ×× unit

Extended information:

This account accounts for the loan loss impairment provisions set aside by banks in accordance with regulations. No loan loss provisions are made for entrusted loans for which banks do not bear risks. This account should be accounted for by setting up detailed accounts according to individual loan loss provisions and combined loan loss provisions.

At the end of the period, the bank shall base its decision on the borrower's repayment ability, willingness to repay, repayment of loan principal and interest, market value of collateral, guarantor's support, and the bank's internal credit management and other factors.

Analyze its risk level and possibility of recovery to determine whether it is impaired. If there is objective evidence that impairment has occurred, loan loss provisions should be made.

When withdrawing loan loss provisions, debit the "Asset Impairment Losses - Loan Loss Provisions" account and credit this account. The loan loss provision accrued in the current period is greater than its book balance.

Additional impairment provisions should be made based on the difference, debit the "Asset Impairment Loss - Provision for Loan Loss" account, and credit this account. For various loans that are truly irrecoverable.

When it is approved as a bad debt loss, the loan loss provision withdrawn should be written off, this account should be debited, and "customer loans", "discount" and other accounts should be credited.

If the loan loss provision that has been confirmed and written off is recovered later, the "customer loan", "discount" and other accounts should be debited and credited to this account according to the actual amount recovered.

At the same time, "unit deposits", "personal deposits" and other accounts are debited, and "customer loans", "discount", etc. are credited. Loan loss provisions should be accounted for separately.

On the balance sheet, the assets for which loan loss provisions are made shall be reflected by the amount after deducting the loan loss provisions made for the asset; the loan loss provisions made shall be separately included in the asset impairment. Prepare to reflect on detailed sheet.

This account should be calculated in detail according to the type of loan loss reserves. The ending credit balance of this account reflects the balance of loan loss reserves that the bank has accrued.

Baidu Encyclopedia-Loan Loss Provision