Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Bank loans due within the following twelve months, including the current portion transferred from a long-term bank loan when preparing the financial statements.

Common Journal Entries

Receive short term bank loan

Dr. Bank Account
Cr. Short Term Bank Loans

Repay short term bank loan

Dr. Short Term Bank Loans
Cr. Bank Account

Renew short term loan

Dr. Short Term Loans (Old)
Cr. Short Term Loans (New)

Reclassify long term to short term

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