The organization issues its own bill of exchange and settles it with the supplier: accounting entries. Accounting for bills of exchange, postings How to reflect the acquisition of a foreign currency bill in 1c
The organization issues its own bill of exchange, then settles the bill with the supplier. The face value of the promissory note issued by the buyer is equal to the amount of debt to the supplier. There is no interest or discount on the bill. The parties did not enter into any agreement to replace the debt with a loan obligation. What accounting entries need to be made?
Having considered the issue, we came to the following conclusion:
In this case, the transfer of the supplier’s own bill of exchange is reflected in the buyer’s accounting records by internal account entries with the simultaneous acceptance of the issued bill of exchange for off-balance sheet accounting.
Rationale for the conclusion:
For your information:
In the case of replacing the debt with a loan obligation in compliance with the novation requirements, the buyer’s obligation to the supplier to pay the debt terminates (from the date of issue of the bill) and the organization’s obligation for the bill loan arises (clause 1 of Article 407, 414, 818 of the Civil Code of the Russian Federation, clause 35 of the resolution Plenum of the Armed Forces of the Russian Federation and Plenum of the Supreme Arbitration Court of the Russian Federation dated December 4, 2000 N 33/14).
Features of the formation in accounting and financial statements of information on costs associated with fulfilling obligations under loans received, including attracting borrowed money by issuing bills of exchange, established by PBU 15/2008 “Accounting for expenses on loans and credits” (hereinafter referred to as PBU 15/2008). The amount of the loan obligation is reflected by the borrower as accounts payable, and the repayment of the principal amount of the obligation on the loan received is reflected as a reduction (repayment) of accounts payable (clause 2, clause 5 of PBU 15/2008).
In this case, to reflect the debt to the bill holder, account 66 “Settlements for short-term loans and borrowings” or account 67 “Settlements for long-term loans and borrowings” (depending on the repayment period) is used. That is, when nominating a debt under a supply agreement into a promissory note, the accounting entries in the buyer’s accounting may be as follows:
The debt to pay for the goods was novated into a loan obligation, formalized by issuing the supplier’s own bill of exchange;
The issued bill is taken into account on the balance sheet.
Encyclopedia of solutions. Accounting for expenses in the form of interest on debt obligations.
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Expert of the Legal Consulting Service GARANT
Lazareva Irina
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*(1) For additional information, see: Encyclopedia of Judicial Practice. Loan and credit. Bill of exchange (Article 815 of the Civil Code).
*(2) It is worth noting that civil legislation does not directly provide for securing an obligation by transferring one’s own bill of exchange.
To the methods of securing obligations established by paragraph 1 of Art. 329 of the Civil Code of the Russian Federation, include:
-
retention of the debtor's property;
penalty;
Nevertheless, this paragraph provides that the fulfillment of obligations, in addition to those listed, can be ensured “by other means provided for by law or contract.”
Bills of exchange are shown differently in accounting, depending on several factors related to their nature. In the article we will consider these factors and their impact on the reflection of bills of exchange in accounting.
What is a bill of exchange?
A bill of exchange is a security containing an obligation to pay its holder the amount specified in it. The features of how a bill of exchange is reflected in accounting are influenced by the fact that it can be:
- own or someone else's;
- simple (drawn up between 2 persons) or transferable (drawn up with the participation of a third party who will make the payment, repaying his debt to the drawer);
- discount (transferred at a price different from that indicated in it), interest (providing for the accrual of a certain percentage on the amount reflected in it) or interest-free (with a zero interest rate);
- a debt obligation, a means of payment, borrowing or investment.
It is extremely important for this document to comply with the requirements for the rules of execution and, in particular, to indicate in it (clauses 1 and 75 of the provisions “On bills of exchange and promissory notes”, approved by Resolution of the Central Executive Committee of the USSR and the Council of People's Commissars of the USSR dated 08/07/1937 No. 104/1341) :
- its name;
- dates and places of its compilation;
- offers or promises to pay a certain amount;
- the name of its payer;
- payment deadline;
- place of payment;
- to whom or on whose order the payment is made;
- signatures of the person issuing the bill.
Acceptable:
- Do not indicate payment deadline. Then the bill is paid upon presentation.
- Do not provide places of origin and payment. In this case, they will be considered the location of the payer, reflected next to his name.
- Additionally, enter information about the interest rate and the start date of its application for a bill of exchange that is interest-bearing.
- The existence of contradictions between the payment amount entered into the bill in numbers and in words. The amount indicated in words will be considered correct.
- Transfer not only a bill of exchange, but also a promissory note.
A bill of exchange can only be issued on paper (Article 4 of the Law of the Russian Federation “On Bills of Exchange and Promissory Note” dated March 11, 1997 No. 48-FZ). The fact of its transfer is reflected in the relevant agreement and act. The existence of an agreement is not necessary when issuing your own bill.
Accounting for own bills
A promissory note is usually issued by the buyer to the supplier in a situation where he cannot pay for the delivery in cash. Such a bill in the relationship between these two parties has the nature of a promissory note and is not taken into account as a security until it is transferred to a third party. Its issue and receipt is reflected by the buyer and supplier on the same settlement accounts as the principal debt. Only the analytics changes:
- from the buyer:
Dt 60calc Kt 60veks,
60calculation - subaccount for reflecting the debt for supplies,
60veks - subaccount of debt on the issued own bill;
- from the supplier:
Dt 62veks Kt 62calculation,
62veks - subaccount of debt on the buyer’s own bill of exchange received,
62calculation - subaccount for reflecting the debt for shipment.
At the same time, both parties show the appearance of such a bill on their balance sheet:
- buyer - as security issued:
- supplier - as security received:
If the bill is interest-bearing, then income will be accrued on it monthly, increasing the amount of the buyer’s debt on the bill:
- from the buyer:
Dt 91 Kt 60veks,
- from the supplier:
Dt 62veks Kt 91,
Payment on the bill will be reflected as the closure of the debt on it:
- from the buyer:
Dt 60veks Kt 51,
where 60veks is a subaccount of debt on the issued own bill;
- from the supplier:
Dt 51 Kt 62veks,
where 62veks is a subaccount of debt on the buyer’s own bill of exchange received.
At the same time, the bills will be written off from off-balance sheet accounts:
- from the buyer:
- from the supplier:
Accounting for other people's bills of exchange as part of financial investments
The signs of financial investments correspond to bills purchased at a price below par or interest-bearing, i.e. capable of generating income (clause 2 of PBU 19/02, approved by order of the Ministry of Finance of Russia dated December 10, 2002 No. 126n).
They are taken into account in a separate subaccount of account 58-2 (accounting chart of accounts, approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n) in a valuation corresponding to the amount of acquisition costs (clause 9 of PBU 19/02) or the agreed, market, estimated value ( paragraphs 12-17 PBU 19/02). They can arrive in several ways, and this will determine the posting of the bill in accounting. For example:
- when purchasing this security:
Dt 58-2 Kt 76;
- payment by the buyer for delivery by third party bill:
Dt 58-2 Kt 62;
- receiving it as a contribution to the management company:
Dt 58-2 Kt 75;
- property exchange transactions:
Dt 58-2 Kt 91,
Dt 91 Kt 10 (01, 04, 41, 43, 58);
- free admission:
Dt 58-2 Kt 91.
Since each debt security is individual, bills of exchange are reflected in accounting individually and the valuation upon disposal is made at the cost of each unit. The disposal process is carried out through account 91, forming the financial result from this operation on it. In this case, the debit of account 91 includes the book value of the bill:
Dt 91 Kt 58-2.
And for the credit of account 91, the amount is formed depending on the way in which the disposal occurs. For example, via:
- redemption or sale:
Dt 76 Kt 91;
- payment by delivery bill:
Dt 60 Kt 91;
- contribution to the management company:
Dt 58-1 Kt 91;
- issuing a loan:
Dt 58-3 Kt 91;
- exchange of property:
Dt 10 (01, 04, 41, 43, 58) Kt 91.
The sale of bills of exchange is not subject to VAT (subclause 12, clause 2, article 149 of the Tax Code of the Russian Federation).
Read about how participation in settlements with bills of exchange affects separate VAT accounting “Settlements with someone else’s bills of exchange do not require separate accounting for VAT” .
Income on a bill with an acquisition cost below its face value can be accounted for in one of two ways, the choice between which must be reflected in the accounting policy:
- or the book value of the bill will not change (clause 21 of PBU 19/02) and will be taken into account at the time of its disposal, reflected in the financial result;
- or the increase in the book value to the par value will be done evenly during the circulation period of the bill (clause 22 of PBU 19/02):
Dt 58-2 Kt 91.
Interest on a bill is accrued monthly, but they do not increase the accounting value of financial investments (clause 21 of PBU 19/02) and are therefore reflected in the settlement accounts:
Dt 76 Kt 91.
The amount of this interest will be included in the book value of the bill upon disposal:
Dt 91 Kt 76.
Accounting for other people's bills that are not financial investments
Interest-free bills purchased at par or at a price above par do not meet the profitability condition established for accounting for them as financial investments (clause 2 of PBU 19/02). For this reason, they are not taken into account in account 58, but in calculations using account 76.
The ways of their receipt and disposal may be the same as for revenue bills, but in the receipt transactions, instead of account 58, account 76 will be used, and from account 76, when such bills are retired, their accounting value will be written off to the debit of account 91.
Read about the features of accounting for settlements with bills of exchange when applying the simplified tax system. “List of expenses under the simplified tax system “income minus expenses”” .
Results
Bills of exchange in accounting have their own reflection features. These features are due both to the existence of one’s own and other people’s bills, and to the division of the latter into profitable and non-income-generating.
A bill of exchange is one of the types of debt obligations, which gives the recipient of the bill the right to demand payment specified in the bill of exchange within a specified period of time; bills of exchange are distinguished between promissory notes and bills of exchange, and today we will look at the accounting of promissory notes in 1C: Accounting 8, edition 2.
A promissory note, or also called a solo bill, is drawn up and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at a specified time and place.
In our example, we will consider a situation where an enterprise received a promissory note as payment for goods sold.
An example of accounting for promissory notes.
On November 28, 2012, Veda LLC sold the product table, 10 pcs., to the buyer of Tonus LLC. at a price of 1180 rub. per piece, including VAT 18%. As payment, Tonus LLC handed over to Veda LLC its own interest-free promissory note with a repayment period of 2 months.
The first document that needs to be done in 1C: Accounting 8 is “Sales of goods and services” with the type of operation “Sale, commission”. You can find this document on the “Sales” tab.
We fill out the upper part of the document: we indicate the counterparty, the agreement with him, the warehouse from which the goods will be released. At the bottom of the document, select the product to be sold, indicate its quantity and price.
We post a document based on which the following transactions are generated
Since the sale of goods subject to VAT, Veda LLC needs to issue an invoice. This can be done on the basis of the document “Sales of goods and services”.
Next, following our example, you need to reflect the receipt of a promissory note from the buyer. Since accounting for promissory notes for 1C is not a very common operation, the posting to receive a bill must be done manually through “Operation (accounting and tax accounting)”. Located in the top menu "Operations".
Here we need to indicate the accounting accounts, the counterparty, the agreement with him and the bill itself.
Accounting for promissory notes that are used in payments for goods, works, services and for which there is no income is carried out on accounts 60,62,76. In our example, the bill of exchange was received from the buyer, so it will be accounted for in account 62 “Settlements with buyers and customers”, subaccount 03 “Bills received”.
At the end of the period, in our example, January 28, 2013, the bill is repaid by payment to the bank account of Veda LLC. To reflect this operation, you need to fill out the document “Receipt to the current account”. Operation type “Other receipts”.
When carrying out business activities, any company takes part in purchase and sale transactions:
- goods,
- works,
- services,
At the same time, mutual settlements can be carried out not only in cash, but also in other means of payment. One such means is a bill of exchange.
According to the provisions of Article 143 of the Civil Code, a bill of exchange refers to securities*.
*A security is a document certifying (in compliance with the established form and required details) property rights, the exercise or transfer of which is possible only upon presentation.
With the transfer of a security, all rights certified by it in the aggregate are transferred (clause 1 of Article 142 of the Civil Code of the Russian Federation).
Securities relate to objects of civil rights in accordance with Article 128 of the Civil Code of the Russian Federation and in accordance with paragraph 2 of Article 130, are recognized as movable property.
A bill of exchange is a debt security that certifies the debt of one person (debtor) to another person (creditor), expressed in monetary form, the rights to which can be transferred to any other person by order of the owner of the bill without the consent of the debtor.
The issue and circulation of bills are carried out in accordance with bill law.
In accordance with the provisions of Article 1 of the Federal Law of the Russian Federation dated February 21, 1997. No. 48-ФЗ “On bills of exchange and promissory notes” No. 48-ФЗ, on the territory of the Russian Federation the Decree of the Central Executive Committee and the Council of People's Commissars of the USSR “On the entry into force of the Regulations on bills of exchange and promissory notes” dated 07.08 is applied. 1937 No. 104/1341.
Resolution No. 104/1341 considers two types of bills:
- promissory notes,
- bills of exchange.
For example:
- treasury,
- bronze,
- friendly,
- counter.
- secured,
- unsecured.
1. Trade or settlement bills.
By commodity is meant a bill of exchange used for settlements between organizations and their counterparties in transactions related to the purchase and sale of:
- goods,
- works,
- provision of services.
Financial bills are bills whose transactions are not related to purchase and sale transactions. Including bills of exchange that are security for a loan obligation.
Despite the fact that settlements using bills of exchange are not uncommon nowadays, the reflection of these transactions in accounting always raises many questions.
The article will cover:
- accounting methodology for certain transactions with bills of exchange,
- features of the current legislation regulating bill settlements.
A bill of exchange is a written promissory note of a form strictly established by law, issued by the drawer (borrower) to the holder of the bill (creditor), giving the latter the unconditional right to demand from the drawer payment by a certain date the amount of money specified in the bill.
The concepts of a promissory note and a bill of exchange and their differences:
1. Promissory note are called a document containing a simple and unconditional obligation of the drawer to pay the holder of the bill a certain amount at a specified time and in a specific place.
A promissory note is issued by the debtor. At its core, it is an IOU.
2. Bill of exchange (draft) is a document that is an instruction from the drawer (drawer) to the drawee (payer) to pay the remitee (third party) a certain amount at a specified time and in a specific place.
The difference between a promissory note and a bill of exchange is that a bill of exchange, unlike a promissory note, involves three parties:
- Drawer - drawer,
- The drawee is the payer,
- The recipient or holder of a bill.
A promissory note is special case a bill of exchange in which two parties are involved due to the fact that the drawer and the payer are one person.
A promissory note does not require acceptance, since the very fact of issuing the bill automatically means consent to its payment.
At the same time, both a bill of exchange and a promissory note can be transferred from one holder to another. To do this, it is necessary to issue an endorsement - an endorsement on the reverse side of the bill.
Other common types of bills and their definitions:
1. Discount bill called an interest-free bill placed at a price below par, that is, taking into account the discount.
2. Interest-bearing bill called a note with a fixed interest rate. It is issued for the purpose of accumulating income as a deposit instrument. The advantage of such bills is that they can also be used to pay off counterparties.
3. Interest-free bill A bill of exchange is called one that does not contain an interest rate clause, or has a zero interest rate and a maturity date “at sight.”
PROCEDURE FOR EXECUTION OF BILLS
When conducting transactions with bills of exchange, you must remember the following:
1. A bill of exchange is a formal document. The absence of any of the required details makes the bill invalid.
2. Only money can be the subject of a bill of exchange.
3. A bill of exchange is an unconditional and indisputable monetary obligation, since the obligation to pay the bill of exchange cannot be limited by any conditions.
4. Bills of exchange and promissory notes must be drawn up only on paper (Article 4 of Law No. 48-FZ).
In accordance with the provisions of Decree No. 104/1341 bill of exchange must contain:
1) The name “bill” included in the text of the document and expressed in the language in which this document was drawn up.
2) A simple and unconditional offer to pay a certain amount.
3) Indication of the payment term.
4) Indication of the place where the payment should be made.
5) The name of the person to whom or to whose order the payment should be made.
6) Indication of the date and place of drawing up the bill.
7) Signature of the person issuing the bill (drawer).
For a bill of exchange the same mandatory requisite is:
- the name of who must pay (payer).
1. A bill of exchange for which the payment term is not specified is considered as payable upon sight.
2. In the absence of special instructions, the place of drawing up the document is considered the place of payment and at the same time the place of residence of the payer.
3. A bill of exchange that does not indicate the place of its drawing up is considered signed in the place indicated next to the name of the drawer.
note : In a bill payable at sight, the drawer may stipulate that interest will accrue on the bill amount. In any other bill of exchange such a condition is considered unwritten.
The interest rate must be stated on the bill itself. In the absence of such an indication, the condition is considered unwritten.
Interest is accrued from the date the bill is drawn up, unless another date is specified.
Both a promissory note and a bill of exchange can be transferred by endorsement*.
*By endorsement called the endorsement affixed by the holder of the bill on the bill (or on the additional sheet - together), through which all rights under the bill are transferred to another person.
At the same time, the drawer can prohibit the transfer by placing a clause “not to order” in the text of the document. This or a similar clause converts a negotiable instrument into a non-negotiable one. Such a bill cannot be transferred by endorsement.
Endorsement can even be made in favor of the payer, regardless of whether he accepted the bill or not, or in favor of the drawer, or in favor of any other person obligated under the bill.
These persons may in turn endorse the bill.
The endorsement must be simple and unconditional. Any condition limiting it is considered unwritten.
Partial endorsement is invalid.
A bearer endorsement has the force of a blank endorsement.
A bill of exchange can be issued for a period of:
1. Upon presentation.
Such a bill is payable upon presentation and must be presented for payment within one year from the date of its preparation.
The drawer may shorten this period or stipulate a longer period. These terms may be reduced by endorsers.
The drawer may stipulate that a bill of exchange due at sight cannot be presented for payment before a certain date.
In this case, the deadline for presentation runs from this deadline.
2. In such and such a time from presentation.
The due date for a bill of exchange drawn up at such and such a time from presentation is determined either by the date of acceptance or the date of protest.
In the absence of a protest, an undated acceptance is considered to be made in relation to the acceptor on the last day of the period provided for presentation for acceptance.
3. In so much time from compilation.
A bill of exchange issued for a period of one or several months from drawing up or presentment becomes due on the corresponding day of the month in which payment is due.
If there is no corresponding day in a given month, the payment deadline occurs on the last day of that month.
If a bill of exchange is issued for a period of one and a half months or several months and a half from drawing up or from presentation, then whole months must first be counted.
4. On a certain day.
If a bill of exchange is payable on a specific day in any place where a calendar other than the place of issue is adopted, then the due date for payment is considered to be determined according to the calendar of the place of payment.
If different calendars are in effect at the place of issue and at the place of payment for a bill of exchange issued for a period of so much time from its issuance, then the date corresponding to the day of issue is set according to the calendar of the place of payment, and depending on this, the payment period is determined.
Note:Bills of exchange containing either a different date or consecutive terms of payment are void.
Payment of a bill whose due date falls on a legally established non-working day can only be demanded on the first next working day.
Likewise, all other actions related to the bill, in particular presentation for acceptance and protest, can only be performed on a business day.
If any of these actions must be performed within a certain period, the last day of which is a non-working day established by law, then such period is extended to the next working day after the expiration of the period. Non-working days that fall during the period are counted towards the term.
In accordance with paragraph 73 of Resolution No. 104/134, the deadlines established by law or in the bill of exchange do not include the day from which the period begins to flow.
So, for example, when calculating interest, the day the bill was drawn up or the later date indicated on it for the calculation of interest is not included in the calculation.
ACCOUNTING METHODOLOGY FOR BILL PAYMENTS
The accounting procedure for transactions involving bills of exchange is determined:
- Based on the very terms of such transactions, taking into account the functions performed by bills of exchange,
- Based on whether the bill of exchange is a bill of exchange of a third party or a bill of exchange of an organization participating in the transaction.
1.2 Accounting for the seller of goods (works, services). The buyer paid with a bill of exchange.
In accordance with the provisions of the Chart of Accounts for accounting the financial and economic activities of organizations and the Instructions for its application, approved by order of the Ministry of Finance dated October 31, 2000. No. 94n, for accounting for bills received that secure the buyer’s debt, account 62 “Settlements with buyers and customers” is intended.
Subaccount 62.3 “Bills received” is opened for this account.
The buyer’s debt is transferred to this subaccount from subaccount 62.1 “Settlements with buyers and customers”:
- the buyer’s debt on bills received as payment for goods (work, services).
Such a bill of exchange is not a financial investment in accordance with clause 3 of PBU 19/02 “Accounting for financial investments”: to the organization's financial investments do not apply bills issued by the organization-issuer of the bill to the organization-seller in settlements for goods sold, products, work performed, services rendered.
In accordance with Order No. 94-n, if interest is provided on a received bill of exchange securing the debt of the buyer (customer), then as this debt is repaid, the following entries are made:
Credit to account 62.3 “Bills received”
- the amount of debt repayment.
Debit account 51 “Currency accounts” or 52 “Currency accounts”
- by the amount of the percentage.
However, this rule meets the requirements of the principle of prudence to a greater extent than the principle of temporary certainty of the facts of economic activity.
At the same time, in accordance with clause 12 of PBU 9/99 “Income of the organization”, revenue is recognized in accounting if the following conditions are met:
- the organization has the right to receive this revenue arising from a specific contract or otherwise confirmed in an appropriate manner;
- the amount of revenue can be determined;
- there is confidence that a particular transaction will result in an increase in the economic benefits of the organization. Confidence that a particular transaction will result in an increase in the economic benefits of the organization exists when the organization received an asset in payment, or there is no uncertainty regarding the receipt of the asset;
- the right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (service provided);
- the expenses that have been or will be incurred in connection with this operation can be determined.
Debit account 62.3 “Bills received”
Credit to account 91 “Other income and expenses”
- the buyer’s debt has been increased by the amount of interest on the bill.
When choosing this method, it should be fixed in the company's accounting policies for accounting purposes.
Analytical accounting for account 62 “Settlements with buyers and customers” is carried out for each invoice presented to buyers (customers), and for settlements with scheduled payments - for each buyer and customer.
At the same time, the construction of analytical accounting should provide the ability to obtain the necessary data, including:
- For bills discounted (discounted) in banks;
- For bills for which funds were not received on time.
In accordance with the provisions of Order No. 94n, account 60 “Settlements with suppliers and contractors”, subaccount 60.3 “Bills issued” are intended for accounting for bills of exchange issued to secure debt to the seller.
The buyer’s debt is transferred to this subaccount from subaccount 60.1 “Settlements with suppliers and contractors”:
Debit of account 60.3 “Bills issued”
Credit to account 60.1 “Settlements with suppliers and contractors”
- Issued own bill of exchange to the supplier.
Analytical accounting for account 60 “Settlements with suppliers and contractors” is carried out for each submitted invoice, and settlements in the order of scheduled payments are carried out for each supplier and contractor.
At the same time, the construction of analytical accounting should ensure the ability to obtain the necessary data, including:
- to suppliers on bills issued, the payment period of which has not yet arrived;
- to suppliers for overdue bills of exchange.
2.1. Accounting for the seller of goods (works, services). The buyer paid with a third party bill of exchange.
Unlike the situation with the buyer's own bill of exchange, the transfer of a third party's bill of exchange leads to the repayment of the buyer's debt to the supplier from the moment of such transfer.
In case the bill of exchange of a third party is:
- Interest
- Discount,
In accounting, such a transaction is reflected as follows:
Debit of account 58 “Financial investments” (sub-account 58.2 “Debt securities)
- a third party bill of exchange was transferred from the buyer to the supplier.
Credit to account 62.1 “Settlements with buyers and customers”
- the buyer’s debt for the goods (work, services) received is repaid with an interest/discount bill of exchange from a third party.
Interest on the bill will accrue:
Debit of account 76 “Settlements with various debtors and creditors”
Credit to account 91 “Other income and expenses”
- interest accrued on the bill.
If a third party’s bill of exchange is interest-free, then such a bill of exchange cannot be taken into account as part of financial investments, since it does not meet the requirement of clause 2 of PBU 19/02.
In accounting, the transfer of such a bill of exchange is reflected by the posting:
Debit of account 76 “Settlements with various debtors and creditors”
Credit to account 62.1 “Settlements with buyers and customers”
- the buyer paid for the goods (work, services) received with an interest-free bill of exchange from a third party.
2.2. Buyer's account. The organization transferred to the supplier a bill of exchange from a third party as payment for goods (works, services).
The disposal of a third party's bill of exchange is reflected in a separate transaction as the sale of bills of exchange.
When retiring interest-bearing/discount bills, you must be guided by PBU 19/02 “Accounting for Financial Investments”.
Such disposal is reflected by the following entries:
Debit of account 76 “Settlements with various debtors and creditors”
Credit to account 91.1 “Other income”
- the sale of a third party’s bill of exchange is reflected.
Debit account 91.2 “Other expenses”
Credit to account 58 “Financial investments” (sub-account 58.2 “Debt securities)
- the cost of the bill is written off as expenses.
The disposal of an interest-free bill of exchange is reflected in accounting as follows:
Debit of account 62.1 “Settlements with buyers and customers”
Credit account 76 “Settlements with various debtors and creditors”
- an interest-free bill of exchange from a third party is transferred in payment for goods (work, services) received.
Ekaterina Annenkova, auditor certified by the Ministry of Finance of the Russian Federation, expert in accounting and taxation information agency "Clerk.Ru"
O.V. Kulagina, tax expert
A bill of exchange as a security: from receipt to write-off
Accounting for third party bills
There is no generally accepted definition of a third party bill of exchange, but we will understand it as a bill of exchange, the holder of which is a person who received the bill not from the drawer, but from another bill holder.
Let's see how such a bill is accounted for in accounting. Let’s say right away that in this article we will not consider accounting for income and expenses for profit tax purposes. A separate article was devoted to this in,.
We receive a third party bill of exchange
A bill of exchange of a third party received in payment for goods (work, services) may be recognized by the holder of the bill:
- <или>cash equivalent;
- <или>financial investment;
- <или>accounts receivable.
If the bill is liquid and your organization intends to use it as a means of payment or present it for redemption within 3 months, then such a bill is recognized as a cash equivalent clause 5 PBU 23/2011. Both profitable bills and non-income bills can be recognized as equivalents. Typically, cash equivalents are bills of exchange from major banks. Such bills can be accounted for in a separate subaccount “Cash Equivalents” to account 58. On the balance sheet they are reflected in the group of items 1250 “Cash and Cash Equivalents” in Section II “Current Assets”.
A bill of exchange of a third party, not recognized as a cash equivalent, for which income in the form of interest or discount is provided, is classified as a financial investment. pp. 2, 3 PBU 19/02 and is reflected at the value of the money transferred for the bill or at the cost of goods in payment for which the bill was received pp. 9, 14 PBU 19/02, on account 58 “Financial Investments”, sub-account “Securities”.
Such bills should be shown on the balance sheet:
- <если>repayment of the bill or its sale, transfer for payment is not expected within 12 months after the reporting date, then in the group of articles 1170 “Financial investments” of section I “Non-current assets”;
- <если>repayment of the bill or its sale, transfer for payment is expected within 12 months after the reporting date, then in the group of articles 1240 “Financial investments” of section II “Current assets”.
Non-income bills that are not recognized as cash equivalents are accounted for in account 76 “Settlements with other debtors and creditors” and are recognized in the balance sheet in the group of items 1230 “Accounts receivable” of Section II “Current assets”.
We take into account income on the bill
Discount accounting. The procedure for accounting for discounts on bills of exchange that are recognized as financial investments or cash equivalents is the same.
To simplify the preparation of financial statements, it is better to take into account interest (discount) separately from the cost of the bill in a separate subaccount “Discount/interest” to account 58 or 76. To recognize a discount in accounting, you need to select one of the following options and fix it in the accounting policy. clause 22 PBU 19/02.
OPTION 1. The discount is recognized on a straight-line basis over the remaining period until maturity of the bill. To do this, the amount of discount on the bill (that is, the difference between the face value and the purchase price of the bill) must be divided by the number of days from the date of receipt of the bill to the date of its presentation for payment.
The number of days of holding a bill in a month is determined as follows:
- in the month of receipt of the bill - from the day following the day of receipt of the bill until the last day of the month;
- in the month of disposal of the bill - from the 1st day of the month to the day of repayment or transfer of the bill by endorsement (when selling the bill or transferring it for payment);
- in other months - as the calendar number of days in a month.
In accounting, the discount accrued for the month is recognized as income by monthly posting to the debit of account 58 “Financial investments”, sub-account “Discount/interest”, and the credit of account 91 “Other income and expenses”, sub-account “Other income”.
In the balance sheet, the value of the bill in the group of items “Financial investments” must be shown taking into account the recognized discount. This discount accounting option allows reporting users to show an increase in the real value of the bill as the maturity date approaches.
It is also permissible, instead of account 58 “Financial investments”, to reflect the discount on account 76 “Other debtors and creditors” and in the balance sheet in the group of articles 1230 “Accounts receivable” of Section II “Current assets”.
In the statement of financial results, the discount is formed by the indicator on line 2320 “Interest receivable”.
OPTION 2. The discount on a bill of exchange is recognized at a time when the bill of exchange is sold or redeemed. This method is suitable for cases where the discount on the bill is insignificant and the maturity of the bill is short.
Interest accounting. The procedure for accounting for interest on a bill of exchange is not regulated by accounting regulations, so the organization should independently develop it and consolidate it in its accounting policies.
Since, from an economic point of view, interest-bearing bills do not differ from discount bills, interest on a bill can be taken into account in the same way as a discount. pp. 5, 7 PBU 1/2008.
Interest on a bill is calculated based on the annual interest rate, the face value of the bill and the number of days the bill is held.
Traditionally, interest on bills is accrued monthly on the last day of the month by posting to the debit of account 76 “Settlements with other debtors and creditors” and the credit of account 91 “Other income and expenses”, subaccount “Income”.
We sell, pay off a bill of exchange or transfer goods (works, services) as payment
We will show you how to reflect the disposal of a bill of exchange in different situations. In this case, we present the entries for the case when interest (discount) is recorded on account 58.
SITUATION 1. Repayment of a bill
The bill was accounted for as: | ||
monetary equivalent | financial investment | accounts receivable |
On the date of presentation of the bill of exchange for redemption, we recognize interest (discount) in income for the period:
By the time the bill is redeemed, all interest due must be accrued in the account of the bill holder in full. If the purchase price of your note was lower than the face value plus accrued interest on it at that time, then the “missing” interest must be included in income on the date of maturity of the note |
On the date of receipt of money on the bill, we show the repayment of receivables by posting to the debit of account 51 “Current account” and the credit of account 76 “Other debtors and creditors” for the amount of the par value of the bill | |
On the date of receipt of money on the bill, we make an entry in the debit of account 51 “Current account” and in the credit of account 58 “Financial investments”, sub-account “Cash equivalents”, for the amount of the “cost” of the bill, as well as in the credit of account 58, sub-account “Interest/discount” ", the amount of interest (discount) | On the date of presentation of the bill of exchange, we simultaneously recognize an amount equal to the “cost” of the bill of exchange:
|
SITUATION 2. Transfer of a bill of exchange in payment for goods (work, services)
Income and expenses are recognized as follows.
The bill was accounted for as: | ||
monetary equivalent | financial investment | accounts receivable |
|
On the date of transfer of the bill of exchange for endorsement, we recognize income in the amount of accounts payable for goods (work, services) clause 6.3 PBU 9/99 posting to the debit of account 60 “Settlements with suppliers and contractors” and the credit of account 91 “Other income and expenses”, subaccount “Income” | |
On the same date, we make an entry in the debit of account 60 “Settlements with suppliers and contractors” and in the credit of account 58 “Financial investments”, subaccount “Cash equivalents”, for the amount of the “cost” of the bill, as well as in the credit of account 58, subaccount “Interest/ discount”, for the amount of interest (discount) If the amount of accounts payable, which is repaid by transfer of the bill of exchange, is less than the “cost” of the bill of exchange plus interest accumulated at the time of transfer of the bill of exchange, then the difference is reflected in other expenses |
On the same date we recognize as expenses:
|
On the same date, we recognize as expenses an amount equal to the “cost” of the bill of exchange, in the debit of account 91 “Other income and expenses”, sub-account “Expenses”, and in the credit of account 76 “Other debtors and creditors” |
SITUATION 3. We sell a bill of exchange
The bill was accounted for as: | ||
monetary equivalent | financial investment | accounts receivable |
On the date of transfer of the bill of exchange for endorsement, we recognize in income the interest (discount) for the period:
|
On the date of transfer of the bill of exchange by endorsement, we recognize in income an amount equal to the contractual value of the bill of exchange. clause 6 PBU 9/99, by the debit of account 76 “Other debtors and creditors” and the credit of account 91, subaccount “Income” | |
On the date of receipt of money for the bill, we make an entry to the debit of account 51 “Current account” and the credit of account 58, sub-account “Cash equivalents”, for the amount of the “cost” of the bill, as well as the credit of account 58, sub-account “Interest/discount”, for the amount of interest (discount) If a bill is sold at a loss, it is reflected in other expenses |
On the date of transfer of the bill of exchange for endorsement, we recognize as expenses:
|
On the date of transfer of the bill of exchange for endorsement, we recognize as expenses an amount equal to the “cost” of the bill of exchange - in the debit of account 91, subaccount “Expenses” and in the credit of account 76 “Other debtors and creditors” |
Reflected in reporting
Regardless of how the bill was disposed of, we reflect this operation in the same way in the financial results statement. If profit is received from transactions with a bill of exchange in the form of interest or discount, then it is reflected in line 2320 “Interest receivable”.
The cost of the bill itself, not classified as cash equivalents, can be shown both in the line “Other income” and at the same time in line 2350 “Other expenses”. Or you can “minimize” and not show it, it’s not prohibited clause 42 PBU 19/02; clause 18 PBU 9/99.
Also, a loss may be received from the operation if the price at which the bill of exchange is sold or transferred as payment is lower than the price upon receipt (purchase), increased by the interest accumulated at the time of transfer (discount). In this case, the negative result is reflected in the income statement on line 2350 “Other expenses”.
Let's look at an example of how to reflect transactions with a third party bill of exchange in accounting.
Example. Accounting for third party bills
/ condition / On March 15, 2013, Buratino LLC paid for goods from Malvina LLC with a bank promissory note with a nominal value of RUB 3,335,000. with a payment deadline of “on sight, but not earlier than 04/10/2013”. The date of the bill of exchange is December 10, 2012. The parties agreed that the bill of exchange for the goods paid 3,300,000 rubles, including VAT 18%. The discount amounted to 35,000 rubles.
According to the accounting policy, the discount is recognized evenly in account 58 “Financial investments”, sub-account “Interest/discount”, during the period remaining until the bill is repaid.
On 04/05/2013, the bill of exchange was transferred by endorsement to Papa Carlo LLC as payment for goods totaling RUB 4,235,000, including VAT. The parties agreed that the debt for goods was partially terminated - in the amount of RUB 3,330,000, including VAT 18%.
/ solution / As of the date of receipt of the bill, there were 26 days left until maturity (from 03/16/2013 to 04/10/2013). In March, the organization held the bill for 16 days (from 03/16/2013 to 03/31/2013).
The accounting for Malvina LLC will be as follows:
Contents of operation | Dt | CT | Amount, rub. |
As of the date of receipt of the bill (03/15/2013) | |||
Received a bill of exchange from a third party in payment for goods | 58 “Financial investments”, sub-account “Securities” | 62 “Settlements with buyers and customers”, subaccount “Advances received” | 3 300 000,00 |
At the end of the month (03/31/2013) | |||
Income recognized as discount for March (RUB 35,000 / 26 days x 16 days) |
91 “Other income and expenses”, subaccount “Income” | 21 538,46 | |
On the date of transfer of the bill of exchange by endorsement (04/05/2013) | |||
Repaid debt for goods | 60 “Settlements with suppliers and contractors” | 91, subaccount “Income” | 3 330 000,00 |
The bill was transferred as payment for goods | 91, subaccount “Expenses” | 58, sub-account “Securities” | 3 300 000,00 |
The discount on the bill is written off | 91, subaccount “Expenses” | 58, subaccount “Interest/discount” | 21 538,46 |
In the statement of financial results in the line “Interest receivable” for the first quarter of 2013, Malvina LLC will reflect 21,538.46 rubles, and in the second quarter of 2013 - 30,000 rubles. (cumulative total).
Sometimes bills of exchange from third parties are pledged, for example, to secure repayment of a loan. Art. 336 Civil Code of the Russian Federation. To do this, you can make a collateral endorsement on the bill of exchange (for example, “currency as collateral”) clause 19 of the Regulations on promissory notes and bills of exchange, approved. Resolution of the Central Executive Committee and Council of People's Commissars of the USSR dated 08/07/37 No. 104/1341 or enter into a separate pledge agreement Part 3 Art. 334 Civil Code of the Russian Federation. There is no need to write off such a bill of exchange from the register, since the organization, having pledged it, has not lost its ownership rights to it. Such a bill can be accounted for in a separate subaccount “Pledged” to account 58 “Financial investments”, and in explanatory note users need to be informed about the balance financial statements about which bills and for what amount are pledged? clause 42 PBU 19/02. International standards, in addition to the above information, also require disclosure of the terms and conditions of such a pledge. paragraph 14 IFRS 7.
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