Advance payment (advance payment)

Advance payment refers to the behavior that the bank is forced to pay with its own funds when the customer is unable to pay the due amount. Because banks pay on behalf of customers passively, customers' inability to pay is often not due to temporary difficulties, but often occurs when the management is in trouble and the financial situation deteriorates. Therefore, the advance payment is listed as a bad asset of the bank. Prepayments include bank acceptance bills, letters of credit, bank guarantees and foreign exchange loans.

2. Are loans and prepayments current assets?

Hello!

Belong to non-current assets

If in doubt, please ask.

Three. What assets do the subjects of loans and advances belong to?

Loans and advances are current assets, while loans and advances are asset subjects and creditor's rights of banks. Bank loan refers to an economic behavior that an individual or enterprise issues a loan to a bank at a certain interest rate according to the national policy of the bank and returns it within the agreed time limit. In different countries and different development periods of a country, the types of loans classified according to various standards are also different. For more information about loan and advance assets, please visit:/ask/702b211615835090.html? Zd view more content

4. What subjects do loans and advances belong to?

Loans and advances are current assets, and the purpose of issuance is the creditor's rights of banks. Bank loan refers to an economic behavior in which an individual or enterprise lends funds to an individual or enterprise in need of funds at a certain interest rate and returns them within the agreed time limit. In different countries and different development periods of a country, the types of loans classified according to various standards are also different.

Extended data:

For banks: development is the creditor's right of banks;

Deposit-taking is the main body of liabilities of banks.

Entry:

Borrow: loan

Loans: absorption deposits-corporate deposits-

This is an entry when the bank issued a loan to Gong Ling Yudan Company, which also increased the bank's assets and liabilities. When an enterprise uses a loan:

Borrow: Absorb deposits-

Loan: cash (cash withdrawal)

)

I. Accounting entries for repayment of bank loan interest:

1. When repaying bank loan interest:

Borrow: financial expenses-loan interest

Loans: bank deposits

：

Borrow: Shortage loans or long-term loans.

Loan:

Two, the bank loan interest accounting entries are:

1. Accrued interest on short-term loans:

Debit: financial expenses-interest expenses

Loan: interest payable

2. When making payment:

Borrow: interest payable

Loans: bank deposits

Entry:

1. When an enterprise borrows money from a bank, it is judged whether it is a short-term loan or a long-term loan according to the length of the loan period. All loans within three years can be classified as short-term loans and loans.

2. Cash received by the enterprise shall be treated as loan.

Debit: bank deposit

Loans: short-term (long-term) loans-bank loans.

Main accounting treatment of bank loans

1, the principal of the enterprise fund contract is rolled by the ruler, and the subject (principal) is debited, and the subjects such as "absorbing deposits" and "depositing funds in the central bank" are credited according to the actual payment amount. If there is any difference, the account shall be debited or credited.

On the balance sheet date, unpaid interest receivable shall be debited according to the contract principal and contract interest rate of the loan, and "interest income" shall be debited or credited according to the amortized cost and actual interest of the loan. The difference between the contract interest rate and the actual interest rate shall be calculated by the contract interest rate to determine the interest income.

When the loan is recovered, the amount returned by the customer shall prevail.

Borrow: absorb deposits

Deposit money in the central bank

Loan: interest receivable

bank deposit

Interest income

If there is any interest adjustment balance, it should also be carried forward at the same time.

2. On the balance sheet date, if it is determined that the loan is impaired, it will be written down according to the amount to be written down.

Debit: Asset impairment loss

Loan: loan loss reserve

At the same time, the balance should be transferred to this account (impairment should be recorded in this account (adjustment of principal and interest)).

On the balance sheet date, the interest income is calculated and determined according to the loan amortized cost and the actual interest rate.

Borrow: loan loss reserve

Loan: interest income