Long Term Bank Loans

Code: 2221
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Account Information

Account Type Statement of Financial Position
Normal Balance Credit

Definition

Long-term bank loans due for repayment after more than one year

Common Journal Entries

Receive long term bank loan

Dr. Bank Account
Cr. Long Term Bank Loans

Pay monthly loan installment

Dr. Long Term Bank Loans
Dr. Interest Expense
Cr. Bank Account

Restructure long term loan

Dr. Long Term Bank Loans (Old)
Cr. Long Term Bank Loans (New)

Transfer portion to short term

Dr. Long Term Bank Loans
Cr. Short Term Bank Loans

Receive long term bank loan

Dr. Bank Account
Cr. Long Term Bank Loans

Pay monthly loan installment

Dr. Long Term Bank Loans
Dr. Interest Expense
Cr. Bank Account

Restructure long term loan

Dr. Long Term Bank Loans (Old)
Cr. Long Term Bank Loans (New)

Transfer portion to short term

Dr. Long Term Bank Loans
Cr. Short Term Bank Loans

International Accounting Standards

IFRS IFRS 9 Financial Instruments

Measured at amortised cost using effective interest rate method.

US GAAP ASC 470 Debt

Similar amortised cost measurement. Specific rules for debt modifications and extinguishments.