Entrusted loan is very good realization needs borrowing between enterprises. To form a mutual financing channel between the surplus funds of enterprises and shortage of funds of enterprises.

Accounting treatment of enterprise when granting loans

For one year (including one year) of the entrusted loans, can be in the enterprise"Short term investment"Establish the subsidiary subjects under the subject of accounting. But for more than a year of the entrusted loans, more complex, need to set"Long term debt investments and other long-term debt investment (principal, interest accrued)","Income from investment"Accounting subjects.

In accordance with the accrual principle, business bank loans to pay fees, the amount is small, the profit or loss of the enterprise in the direct general; if the amount is larger, can entrust loan period to confirm the interest income amortization, are charged to the profit and loss. 
For example:AThe company in2007Years1Month1Day, bank loans500Million yuan, pay bank charges when granting loans18Million yuan. The bank will be the500Million loans toBEnterprises and quarterly carried interest, loans for the period3Years, the annual rate of6%. 
SoAThe company's accounting treatment are as follows:

1Remit the deposit and pay the relevant fees 
Borrow: a long-term debt investment-Other long-term debt investment (Ben Jin)5000000 
Prepaid expenses-Fee 180000 
Borrow: bank deposit 5180000

2At the end of each month, the enterprise interest 
Borrow: a long-term debt investment-Other long-term debt investment (accrued interest)25000 
Credit: investment income 25000

3Monthly amortization of loan fee (180000 3 12=5000) 
Borrow: investment income 5000 
Credit: prepaid expenses-Fee 5000

4The bank every quarter toBBusiness loan interest (5000000 x 6%4=75000), and in accordance with the relevant provisions of "business tax" and its detailed rules for implementation, the withholding tax (75000 x 8% =6000). The bank also toAInterest payment, the interest is deducted from the amount of business tax (75000-6000=69000). To recover the interest,AThe company based on the bank to transfer the withholding tax notice and related original documents to the appropriate accounting treatment. 
Borrow: investment income 6000 
Credit: tax payable-Business tax payable 6000 
Borrow: bank deposit 69000 
Tax payable-Business tax payable 6000 
Credit: a long-term debt investment-Other long-term debt investment (accrued interest) 75000

5To recover the investment 
Borrow: bank deposit 5000000 
Credit: a long-term debt investment-Other long-term debt investment (Ben Jin) 5000000

 

The new accounting treatment

According to the accounting standards for business enterprises ("2006Edition) "the relevant provisions of the subjects and the guide for the application of accounting treatment of accounting treatment, proceed as follows.

In general, the entrusted loans is refers to the enterpriseCommissioned by the bank or other financial institutions lending money to other units. Granting loans to enterprises through the"1303Entrusted loan "accounting entrust loan.

The date of the balance sheet, according to the loan contract and the contract interest rate calculation to determine the principal receivables uncollected interest, debit "receivable" account, interest income determined at amortized cost loans and real interest rates, credited to "interest income" subject, on the basis of the difference, debit or credit to the account (interest adjustment). Contract interest rate and real interest rate difference is small, can also be used to determine the contract interest rate of interest income.

To recover the loan according to the customer, should return the amount, debit "deposits", "deposits with central bank" and other subjects, by the amount of interest receivable recovered, credited to "interest receivable" account, according to the return of the loan Ben Jin, credited to this account (Ben Jin), on the basis of the difference, credited to "interest income" subject. In the adjustment of interest balance, but also carry forward.

 

 Entrusted loan detailed account settings:

 Entrusted loan--Principal

--The adjustment of interest

--Impaired

  ("loans" account balance at the end of a debit balance,Reflect the enterprise issuing amortised cost not to recover the loan in accordance with the provisions of)

Enterprises loans, according to the loan contract principal, accounting treatment are as follows:

(1Bank loans),

Borrow: entrusted loans-Principal

Borrow: bank deposit

(2Accrued interest)

Borrow: interest receivable  (According to the loan contract and the contract interest rate calculation to determine the principal receivables uncollected interest)

Entrusted loan-The adjustment of interest     (negative balance, credited)

Credit: income from other operations  (Interest income is determined by the amortized cost loans and real interest rate)

(3) received turn to bank loan interest (has withheld relevant taxes)

 Borrow: bank deposit

Credit: interest receivable

(4If a month does not receive) commissioned loan interest, should be confirmed the interest before rushing back to

Borrow: income from other operations

Credit: interest receivable

(5) if in later received the deducted interest income interest should be deducted from entrust loans principal

Borrow: bank deposit

Loans: Loans-Principal

(6Recover the principal and interest)

 Borrow: bank deposit

Loans: Loans--Principal

Other business income

(7Provision for impairment of a loan) preparation

Borrow: asset impairment losses

Loan: loan loss reserve

At the same time,

Borrow: entrusted loans-Impaired

Loans: Loans-Principal

Entrusted loan-The adjustment of interest

The balance sheet date,

Loan: loan loss reserve

Loan:Interest income

(8)To recover the impaired entrusted loan,

Borrow: bank deposit   (entrusted loan amount actually received)

Loan loss reserve  (reserve balance according to the relevant loan loss)

Loans: Loans - impaired  (according to the related loans)

    Impairment loss of assets  Difference.

(9) for being unable to recover the loans, according to the management authority after being approved to be sold as bad debts,

Loan: loan loss reserve

   Loans: Loans - impaired

Reported by management authority approved reseller sheet receivables uncollected interest, reduce sheet "receivables uncollected interest" subject amount.

(10) have been recognized and resell loans later recovered, according to the original rotary pin has been impaired loans,

Borrow: entrusted loans have impairment

   Loan: loan loss reserve

According to the actual amount received,

Borrow: bank deposit   (the amount actually received)

  Loans: Loans - impaired  (according to the original rotary pin has been impaired loans)

      Impairment loss of assets     Difference.

 

Accounting statements disclosure:

According to the "Regulations" enterprise accounting standards, according to the actual situation, in the "other assets", "a year of non current assets" or "other non current assets" listed.