Accounting account 67: purpose and characteristics

Account purpose

To account for debt obligations with a payment period of more than 12 months, account 67 is used. This account combines all possible credits, loans and other financial resources attracted from:

in Russian rubles,
in foreign currency,
in securities (bills, bonds and other debt obligations).

Let us remind you that despite their identical content, credits and loans have two significant differences:

Loans are provided exclusively by licensed credit institutions. A loan can be given by any person, both an individual and a legal entity.
Loans are provided only on the terms of repayment with interest payment. The loan can be either interest-bearing or interest-free.

Analytical accounting

Account 67 combines a lot of information: the amount of loans by type, the amount of accrued interest, penalties for late payments. To avoid confusion, it is necessary not only to distinguish different types of long-term liabilities from each other, but also to identify each creditor separately. An enterprise, in accordance with the recommendations of the accounting policy for organizing analytical accounting for account 67, can open the following sub-accounts:

67/1 “Long-term loans”;
account 67/2 “Long-term loans”;
67/3 “Interest on payment of loans and credits”;
67/4 “Fines and penalties for the payment of loans and borrowings”;
67/5 “Overdue loans and borrowings”;
67/6 “Loans for the issue of securities”;
67/7 “Loans and credits for employees.”

The data is reflected in summary statements, with the help of which the accuracy of analytical accounting is verified.

General account information

Account analytics 67 accounting extended, providing separate accounting:

for credit institutions in the context of loan agreements;
for lenders (companies or individuals) in the context of loan agreements;
by currency of loans and borrowings;
on interest accrued for the use of credit or borrowed funds;
and according to other criteria convenient for the organization.

The account may have sub-accounts:

67.01 “Settlements on loans and borrowings in Russian rubles”;
67.02 “Settlements on loans and borrowings in foreign currency”;
67.03 “Calculations of interest for the use of loans and borrowings.”

Account 67 of the accounting chart of accounts is part of the sixth, settlement section. The account is passive. The credit turnover of the account shows the amount of funds received in debt, and the debit turnover shows their return.

In general, accounting account 67 is an indicator of the financial instability of the company. The greater its share in the balance sheet liability, the more the company is exposed to commercial risks. This is the unsightly characteristic of account 67.

Now let's look at the wiring in detail.

Separate accounting

Long-term loans raised by issuing and placing bonds are accounted for separately in account 67.

Typical entries for account 67 may look like this.

Situation

Solution

Bonds were placed at a price exceeding their face value

Make entries on Dt 51, etc. in correspondence with accounts:

67 (at par value of bonds);
98 “Deferred income” (for the amount of excess of the bond placement price over their par value).

The amount allocated to account 98 is written off evenly during the circulation period of the bonds to account 91 “Other income and expenses”.

Bonds are placed at a price below their face value

The difference between the placement price and the nominal value of the bonds is added evenly over the period of their circulation from Kt 67 to Dt 91

Interest payable on loans and borrowings received is reflected in Kt 67 in correspondence with Dt 91. Accrued interest amounts are taken into account separately.

For the amounts of repaid loans and borrowings, account 67 is debited in correspondence with the cash accounts. Credits and borrowings that are not paid on time are accounted for separately.

Analytical accounting on account 67 is maintained by:

by type of credits and loans;
on credit institutions and other lenders who provided them;
for individual loans and borrowings.

A separate sub-account to account 67 records settlements with banks for discounting (discounting) bills and other debt obligations with a maturity of more than 12 months.

Accounting (discount) of bills and other debt obligations is reflected by the bill holder organization according to Kt 67 (face value of the bill) and:

Dt 51 or 52 (actual amount of money received);
91 (accounting interest paid to the credit institution).

Accounting (discount) of bills and other debt obligations is closed on the basis of a notification from the credit institution about payment by reflecting the amount of the bill under Dt 67 and the credit of the corresponding accounts receivable.

When the holder of the bill returns money received from a credit institution as a result of discounting (discounting) bills or other debt obligations, due to the failure of the drawer or other payer of the bill to fulfill their payment obligations on time, an entry is made under DT 67 in correspondence with the cash accounts. At the same time, debt for settlements with buyers, customers and other debtors, secured by an overdue bill of exchange, continues to be recorded in the corresponding accounts receivable.

Also see “How to manage debtors’ debts to the enterprise.”

Analytical accounting of discounted bills is carried out by:

for credit institutions that have discounted bills of exchange or other debt obligations;
by drawers;
on separate bills.

Also, separately on account 67, they keep records of settlements with credit institutions, lenders and drawers within the group of companies, about the activities of which consolidated financial statements are prepared.

Obtaining credits and loans: transactions

Contents of operation	Account debit	Account credit	Document	Transaction amount
Credit or borrowed funds received in Russian rubles	50.01, 51.01	67.01	Bank statement, receipt order	Amount according to documents, excluding VAT
Received a loan or loan in foreign currency	52.01	67.03	Bank statement	Amount according to documents, excluding VAT
Calculation of interest on a loan or loan	91	67.02	Interest repayment schedule under contracts, accounting certificate	Amount of accrued interest, excluding VAT
Calculation of interest on a loan or loan received for the purchase of real estate (or other large investment object)	08	67.02	Interest repayment schedule, accounting certificate	Amount of accrued interest, excluding VAT

As with all passive accounts, the transaction amounts upon receipt of funds are recorded as credit. Examples of accounts with which account 67 can correspond are given in the table above.

Examples of transactions with transactions on account 67

Example 1. Accounting for a long-term loan received from a bank

LLC "Vesna" received a loan from the bank OJSC "Osen" for 3 years in the amount of 2,500,000 rubles. Principal and interest are calculated monthly in equal installments at a rate of 13.5% per annum.

Table of transactions for account 67 - Long-term loan:

Dt	CT	Amount, rub.	Wiring Description	A document base
51	67	2 500 000,00	Obtaining a loan from OJSC "Osen"	Bank statement
91.02	67	28 125,00	The amount of interest on the loan for the month is reflected	Loan agreement, accounting certificate
67	51	69 444,44	Monthly principal payment	Payment order
67	51	28 125,00	Payment of interest	Payment order

Example 2. Issue of a bond with a value higher than its par value

Let’s say an organization placed a bond on the secondary market worth 16,000 rubles, par value – 10,000 rubles. with a maturity of 24 months.

Posting table – Issue of a bond with a value greater than the par value:

Dt	CT	Amount, rub.	Wiring Description	A document base
51	67	10 000	Reflection of the nominal value of the bond	Bank statement
51	98	6 000	Cash above par is reflected in accounting	Bank statement
98	91.01	250	Every month	Accounting certificate-calculation

Account 66 in accounting: entries for accounting for short-term loans and borrowings
Postings for calculating interest on a loan
Account 75 in accounting: entries for settlements with founders
Account 10 Materials in accounting: postings, examples, subaccounts

Obtaining credits and loans in non-monetary form

The law allows for loans or borrowings in the form of goods or raw materials (materials). These are so-called commercial (commodity) loans. The postings for obtaining a commercial loan will be as follows.

Contents of operation	Account debit	Account credit	Document	Transaction amount
Receipt of goods under a commercial loan agreement	41.01 (10.01)	67.01	Consignment note, loan agreement	Amount according to the document, excluding VAT
Amount of VAT on goods received under a commercial loan agreement	19	67.01	Invoice for delivery note for receipt of goods under a loan agreement	VAT amount on the document

Posting for accrual of interest under a commercial (commodity) loan agreement.

Contents of operation	Account debit	Account credit	Document	Transaction amount
Interest accrued for using a commercial loan	91	67.03	Commercial loan agreement, payment schedule	Amount according to the document, excluding VAT

Repayment of loans and loans: postings

Return (payment) of loans or borrowings is recorded in the debit of account 67. We will also present the transactions in table form.

Contents of operation	Account debit	Account credit	Document	Transaction amount
Funds were transferred to repay a loan or loan in Russian rubles	67.01	51.01	Bank statement, payment order	Amount according to the document, excluding VAT
Funds were transferred to repay a loan or loan in foreign currency	67.03	52.01	Bank statement, payment order	Amount according to the document, excluding VAT
Interest paid for the use of loans or borrowings	67.02	51.01, 52.01	Bank statement, payment order	Amount according to the document, excluding VAT

Account characteristics/description:

Subaccount 67.03 “Long-term loans” is intended to summarize information on the status of long-term (for a period of more than 12 months) loans received by an organization in the currency of the Russian Federation.

Analytical accounting is maintained for organizations that provided the loan (sub-account “Counterparties”) and concluded agreements (sub-account “Agreements”). Each organization that provided a loan is an element of the “Counterparties” directory. Each concluded agreement is an element of the “Counterparty Agreements” directory.

Description of the parent account: Description of account 67 “Settlements for long-term loans and borrowings”