Long Term Bank Loans

Code: 2211
👁 Views: 113

Account Information

Financial Statement 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

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 470 Debt

❓ Frequently Asked Questions

Q: How are long-term bank loans measured?

A: At the present value of future cash flows (amortized cost) using the effective interest rate method.