If the company's capital turnover uses loans, there are generally two ways: long-term loans and short-term loans. After receiving the loan, the company accountant should do the corresponding accounting, how to prepare its accounting entries?

How to make accounting entries when a company receives a loan?

Access to credit

Debit: bank deposit

Loans: short-term loans/long-term loans (short-term loans within one year, long-term loans over one year)

Accumulated interest

Debit: financial expenses-interest

Loan: interest payable

Interest payment

Borrow: interest payable

Loans: bank deposits

Maturity repayment

Borrow: short-term loan/long-term loan.

Loans: bank deposits

The difference between short-term borrowing and long-term borrowing

The accounting content of long-term loan subjects includes the adjustment of loan principal and interest expenditure. Short-term loans refer to all kinds of loans borrowed by enterprises from banks or other financial institutions with a term of less than one year. Only the loan principal is accounted for, not the adjustment of interest expenses.

The meaning of short-term loans and long-term loans

Short-term loans refer to all kinds of loans that enterprises borrow from banks or other financial institutions for a period of no more than one year. Long-term loans refer to all kinds of loans that enterprises borrow from banks or other financial institutions for a period of more than one year (excluding one year) or with an operating cycle of more than one year.

Short-term bank loans are corporate liabilities, and the purpose of borrowing short-term loans is mainly to make up for the shortage of corporate liquidity. Therefore, the interest on short-term loans should be treated as financial expenses.

There are two ways for enterprises to borrow long-term loans. One is to deposit the loan in the bank and withdraw it at any time under the supervision of the bank. The second is that the bank approves a loan limit and can borrow as needed within the limit.

If it is a long-term loan borrowed in the second way, the amount borrowed within the limit should be directly recorded in the subjects such as "construction in progress" and "fixed assets" according to its purpose. In this way, according to the long-term loan of the enterprise, there are different ways to repay the money borrowed by the enterprise within the limit: it can be to repay the principal in installments; Can also be a one-time debt service; You can also repay the principal and interest in installments.