Chapter 14 Liabilities – Long term loan
assignment
Required:
MONCHAN is a Belgian firm that meets all legal requirements. The closing date of its accounting year is December 31st.
Record all journal entries that result from the following information in the journal of MONCHAN for accounting years 20X1
and 20X5. The closing date of the accounting year is December 31st.
What balances related to the loan are to be found in the financial statements 20X2 of MONCHAN?
01/04/20X1 – C/A extract no. X1/012
MONCHAN obtains a loan of 50 000,00 EUR from its bank. The terms of the loan are as follows:
duration of the loan = 10 years
(re)payments have to be made each six months (i.e., on 30/09 and 31/03, respectively):
o 2 500,00 EUR of the loan
o interests (annual interest rate = 6,5%, interests are payable in arrear)
Acc.n° D Acc.n° C Description D C
Acc.n° D Acc.n° C Description D C
Notes Codes Period Previous period
AMOUNTS PAYABLE …………………………………………………… 17/49 ……………………………. ……………………………
Amounts payable after more than one year ………………………… 6.9 17 ……………………………. ……………………………
Financial debts………………………………………………………………. 170/4 ……………………………. ……………………………
Subordinated loans …………………………………………………… 170 …………………………… ……………………………
Unsubordinated debentures ……………………………………….. 171 …………………………… ……………………………
Leasing and similar obligations ………………………………….. 172 …………………………… ……………………………
Credit institutions …………………………………………………….. 173 …………………………… ……………………………
Other loans ……………………………………………………………… 174 …………………………… ……………………………
Trade debts …………………………………………………………………… 175 ……………………………. ……………………………
Suppliers ………………………………………………………………… 1750 …………………………… ……………………………
Bills of exchange payable …………………………………………. 1751 …………………………… ……………………………
Advances received on contracts in progress ………………………. 176 ……………………………. ……………………………
Other amounts payable …………………………………………………… 178/9 ……………………………. ……………………………
Amounts payable within one year ………………………………………. 6.9 42/48 ……………………………. …………………………… Current portion of amounts payable after more than one year falling due within one year 42 ……………………………. ……………………………
Financial debts………………………………………………………………. 43 ……………………………. ……………………………
Credit institutions …………………………………………………….. 430/8 …………………………… ……………………………
Other loans ……………………………………………………………… 439 …………………………… ……………………………
Trade debts …………………………………………………………………… 44 ……………………………. ……………………………
Suppliers ………………………………………………………………… 440/4 …………………………… ……………………………
Bills of exchange payable …………………………………………. 441 …………………………… ……………………………
Advances received on contracts in progress ………………………. 46 ……………………………. ……………………………
Taxes, remuneration and social security ……………………………. 6.9 45 ……………………………. ……………………………
Taxes ……………………………………………………………………… 450/3 …………………………… ……………………………
Remuneration and social security ……………………………….. 454/9 …………………………… ……………………………
Other amounts payable …………………………………………………… 47/48 ……………………………. ……………………………
Accrued charges and deferred income ………………………………… 6.9 492/3 ……………………………. ……………………………
TOTAL LIABILITIES ………………………………………………….. 10/49
STATEMENT OF AMOUNTS PAYABLE, ACCRUED CHARGES AND DEFERRED INCOME
Codes Period
ANALYSIS BY CURRENT PORTIONS OF AMOUNTS INITIALLY PAYABLE AFTER MORE THAN ONE YEAR
Amounts payable after more than one year, not more than one year
Financial debts ………………………………………………………………………………………………………………………. 8801 …………………………….
Subordinated loans ……………………………………………………………………………………………………………. 8811 ……………………………
Unsubordinated debentures ………………………………………………………………………………………………… 8821 ……………………………
Leasing and other similar obligations ………………………………………………………………………………….. 8831 ……………………………
Credit institutions ……………………………………………………………………………………………………………… 8841 ……………………………
Other loans ………………………………………………………………………………………………………………………. 8851 ……………………………
Trade debts ……………………………………………………………………………………………………………………………. 8861 …………………………….
Suppliers …………………………………………………………………………………………………………………………. 8871 ……………………………
Bills of exchange payable ………………………………………………………………………………………………….. 8881 ……………………………
Advance payments received on contracts in progress ………………………………………………………………….. 8891 …………………………….
Other amounts payable ……………………………………………………………………………………………………………. 8901 …………………………….
Total amounts payable after more than one year, not more than one year …………………………………….. (42) …………………………….
Amounts payable after more than one year, between one and five years
Financial debts ………………………………………………………………………………………………………………………. 8802 …………………………….
Subordinated loans ……………………………………………………………………………………………………………. 8812 ……………………………
Unsubordinated debentures ………………………………………………………………………………………………… 8822 ……………………………
Leasing and other similar obligations ………………………………………………………………………………….. 8832 ……………………………
Credit institutions ……………………………………………………………………………………………………………… 8842 ……………………………
Other loans ………………………………………………………………………………………………………………………. 8852 ……………………………
Trade debts ……………………………………………………………………………………………………………………………. 8862 …………………………….
Suppliers …………………………………………………………………………………………………………………………. 8872 ……………………………
Bills of exchange payable ………………………………………………………………………………………………….. 8882 ……………………………
Advance payments received on contracts in progress ………………………………………………………………….. 8892 …………………………….
Other amounts payable ……………………………………………………………………………………………………………. 8902 …………………………….
Total amounts payable after more than one year, between one and five years ……………………………….. 8912 …………………………….
Amounts payable after more than one year, over five years
Financial debts ………………………………………………………………………………………………………………………. 8803 …………………………….
Subordinated loans ……………………………………………………………………………………………………………. 8813 ……………………………
Unsubordinated debentures ………………………………………………………………………………………………… 8823 ……………………………
Leasing and similar obligations ………………………………………………………………………………………….. 8833 ……………………………
Credit institutions ……………………………………………………………………………………………………………… 8843 ……………………………
Other loans ………………………………………………………………………………………………………………………. 8853 ……………………………
Trade debts ……………………………………………………………………………………………………………………………. 8863 …………………………….
Suppliers …………………………………………………………………………………………………………………………. 8873 ……………………………
Bills of exchange payable ………………………………………………………………………………………………….. 8883 ……………………………
Advance payments received on contracts in progress ………………………………………………………………….. 8893 …………………………….
Other amounts payable ……………………………………………………………………………………………………………. 8903 …………………………….
Total amounts payable after more than one year, over five years …………………………………………………. 8913 …………………………….
Chapter 14 Liabilities – Financial leasing
assignment
Required:
MONCHAN is a Belgian firm that meets all legal requirements. The closing date of its accounting year is
December 31st.
Record all journal entries that result from the following information in the journal of MONCHAN for accounting years 20X0, 20X5 and 20X9. The closing date of the accounting year is December 31st.
What balances related to the financial leasing contract are to be found in the financial statements 20X5 of MONCHAN?
01/09/20X0 Miscellaneous document X0/001
For the production of furniture MONCHAN decides to lease a machine (financial leasing). Details regarding the lease contract (i.e., annuity table) are provided in the table below. Annuities are paid in arrear.
All tangible fixed assets are depreciated employing the straight-line method.
Period Principal amount
Annuity Interest (10%)
Reduction principal amount
01/09/20X0 – 31/08/20X1 57 590,24 10 000,00 5 759,02 4 240,98
01/09/20X1 – 31/08/20X2 53 349,26 10 000,00 5 334,93 4 665,07
01/09/20X2 – 31/08/20X3 48 684,19 10 000,00 4 868,42 5 131,58
01/09/20X3 – 31/08/20X4 43 552,61 10 000,00 4 355,26 5 644,74
01/09/20X4 – 31/08/20X5 37 907,87 10 000,00 3 790,79 6 209,21
01/09/20X5 – 31/08/20X6 31 698,65 10 000,00 3 169,87 6 830,13
01/09/20X6 – 31/08/20X7 24 868,52 10 000,00 2 486,85 7 513,15
01/09/20X7 – 31/08/20X8 17 355,37 10 000,00 1 735,54 8 264,46
01/09/20X8 – 31/08/20X9 9 090,91 10 000,00 909,09 9 090,91
Acc.n° D Acc.n° C Description D C
Acc.n° D Acc.n° C Description D C
Notes Codes Period Previous period
ASSETS
FORMATION EXPENSES ………………………………………….. 6.1 20 ………………………… …………………………
FIXED ASSETS………………………………………………………. 21/28 ………………………… …………………………
Intangible fixed assets………………………………………………. 6.2 21 ………………………… …………………………
Tangible fixed assets ………………………………………………… 6.3 22/27 ………………………… …………………………
Land and buildings ………………………………………………… 22 ………………………… …………………………
Plant, machinery and equipment ……………………………… 23 ………………………… …………………………
Furniture and vehicles ……………………………………………. 24 ………………………… …………………………
Leasing and other similar rights……………………………….. 25 ………………………… …………………………
Other tangible fixed assets ……………………………………… 26 ………………………… …………………………
Assets under construction and advance payments …….. 27 ………………………… …………………………
Notes Codes Period Previous period
AMOUNTS PAYABLE ……………………………………………… 17/49 ………………………… …………………………
Amounts payable after more than one year ………………… 6.9 17 ………………………… …………………………
Financial debts ……………………………………………………… 170/4 ………………………… …………………………
Subordinated loans …………………………………………… 170 ………………………… …………………………
Unsubordinated debentures ……………………………….. 171 ………………………… …………………………
Leasing and similar obligations …………………………… 172 ………………………… …………………………
Credit institutions ……………………………………………… 173 ………………………… …………………………
Other loans ……………………………………………………… 174 ………………………… …………………………
Trade debts ………………………………………………………….. 175 ………………………… …………………………
Suppliers …………………………………………………………. 1750 ………………………… …………………………
Bills of exchange payable ………………………………….. 1751 ………………………… …………………………
Advances received on contracts in progress ……………… 176 ………………………… …………………………
Other amounts payable ………………………………………….. 178/9 ………………………… …………………………
Amounts payable within one year ……………………………… 6.9 42/48 ………………………… ………………………… Current portion of amounts payable after more than one year falling due within one year 42 ………………………… …………………………
Financial debts ……………………………………………………… 43 ………………………… …………………………
Credit institutions ……………………………………………… 430/8 ………………………… …………………………
Other loans ……………………………………………………… 439 ………………………… …………………………
Trade debts ………………………………………………………….. 44 ………………………… …………………………
Suppliers …………………………………………………………. 440/4 ………………………… …………………………
Bills of exchange payable ………………………………….. 441 ………………………… …………………………
Advances received on contracts in progress ……………… 46 ………………………… …………………………
Taxes, remuneration and social security …………………… 6.9 45 ………………………… …………………………
Taxes ……………………………………………………………… 450/3 ………………………… …………………………
Remuneration and social security ……………………….. 454/9 ………………………… …………………………
Other amounts payable ………………………………………….. 47/48 ………………………… …………………………
Accrued charges and deferred income ………………………. 6.9 492/3 ………………………… …………………………
TOTAL LIABILITIES ……………………………………………….. 10/49
Codes Period Previous period
LEASING AND SIMILAR RIGHTS
Acquisition value at the end of the period ……………………………… 8194P xxxxxxxxxxxxxxxxx …………………………
Movements during the period
Acquisitions, including produced fixed assets ………………………… 8164 ………………………..
Sales and disposals …………………………………………………………… 8174 ………………………..
Transfers from one heading to another …………………………. (+)/(-) 8184 ………………………..
Acquisition value at the end of the period ……………………………… 8194 …………………………
RAssessment surpluses at the end of the period ………………………. 8254P xxxxxxxxxxxxxxxxx …………………………
Movements during the period
Recorded …………………………………………………………………………. 8214 ………………………..
Acquisitions from third parties ……………………………………………… 8224 ………………………..
Cancelled …………………………………………………………………………. 8234 ………………………..
Transfers from one heading to another …………………………. (+)/(-) 8244 ………………………..
RAssessment surpluses at the end of the period ………………………. 8254 …………………………
Depreciation and amounts written down at the end of the period ………………………………………………………………………………….. 8324P xxxxxxxxxxxxxxxxx …………………………
Movements during the period
Recorded …………………………………………………………………………. 8274 ………………………..
Written back ……………………………………………………………………… 8284 ………………………..
Acquisitions from third parties ……………………………………………… 8294 ………………………..
Cancelled owing to sales and disposals ……………………………….. 8304 ………………………..
Transfers from one heading to another …………………………. (+)/(-) 8314 ………………………..
Depreciation and amounts written down at the end of the period 8324 …………………………
NET BOOK VALUE AT THE END OF THE PERIOD ………………………. (25) ………………………… Whereof
Land and buildings ………………………………………………………………. 250 …………………………
Plant, machinery and equipment …………………………………………… 251 …………………………
Furniture and vehicles ………………………………………………………….. 252 …………………………
STATEMENT OF AMOUNTS PAYABLE, ACCRUED CHARGES AND DEFERRED INCOME
Codes Period
ANALYSIS BY CURRENT PORTIONS OF AMOUNTS INITIALLY PAYABLE AFTER MORE THAN ONE YEAR
Amounts payable after more than one year, not more than one year
Financial debts………………………………………………………………………………………………………….. 8801 …………………………
Subordinated loans ………………………………………………………………………………………………. 8811 …………………………
Unsubordinated debentures …………………………………………………………………………………… 8821 …………………………
Leasing and other similar obligations ………………………………………………………………………. 8831 …………………………
Credit institutions………………………………………………………………………………………………….. 8841 …………………………
Other loans …………………………………………………………………………………………………………. 8851 …………………………
Trade debts ……………………………………………………………………………………………………………… 8861 …………………………
Suppliers …………………………………………………………………………………………………………….. 8871 …………………………
Bills of exchange payable ……………………………………………………………………………………… 8881 …………………………
Advance payments received on contracts in progress…………………………………………………….. 8891 …………………………
Other amounts payable ……………………………………………………………………………………………… 8901 …………………………
Total amounts payable after more than one year, not more than one year ………………………. (42) …………………………
Amounts payable after more than one year, between one and five years
Financial debts………………………………………………………………………………………………………….. 8802 …………………………
Subordinated loans ………………………………………………………………………………………………. 8812 …………………………
Unsubordinated debentures …………………………………………………………………………………… 8822 …………………………
Leasing and other similar obligations ………………………………………………………………………. 8832 …………………………
Credit institutions………………………………………………………………………………………………….. 8842 …………………………
Other loans …………………………………………………………………………………………………………. 8852 …………………………
Trade debts ……………………………………………………………………………………………………………… 8862 …………………………
Suppliers …………………………………………………………………………………………………………….. 8872 …………………………
Bills of exchange payable ……………………………………………………………………………………… 8882 …………………………
Advance payments received on contracts in progress…………………………………………………….. 8892 …………………………
Other amounts payable ……………………………………………………………………………………………… 8902 …………………………
Total amounts payable after more than one year, between one and five years ………………… 8912 …………………………
Amounts payable after more than one year, over five years
Financial debts………………………………………………………………………………………………………….. 8803 …………………………
Subordinated loans ………………………………………………………………………………………………. 8813 …………………………
Unsubordinated debentures …………………………………………………………………………………… 8823 …………………………
Leasing and similar obligations ………………………………………………………………………………. 8833 …………………………
Credit institutions………………………………………………………………………………………………….. 8843 …………………………
Other loans …………………………………………………………………………………………………………. 8853 …………………………
Trade debts ……………………………………………………………………………………………………………… 8863 …………………………
Suppliers …………………………………………………………………………………………………………….. 8873 …………………………
Bills of exchange payable ……………………………………………………………………………………… 8883 …………………………
Advance payments received on contracts in progress…………………………………………………….. 8893 …………………………
Other amounts payable ……………………………………………………………………………………………… 8903 …………………………
Total amounts payable after more than one year, over five years ……………………………………. 8913 …………………………
Liabilities (Chapter 14) – Long-term loan
assignment
Required:
MONCHAN is a Belgian company that complies with all legal obligations. The year’s accounting year ends on December 31st.
In the MONCHAN journal for accounting years 20X1, record all journal entries that derive from the following information.
as well as 20X5. The accounting year comes to an end on December 31st.
In MONCHAN’s financial statements 20X2, what loan-related amounts can be found?
01/04/20X1 – X1/012 C/A extract
MONCHAN secures a loan from its bank in the amount of 50 000,00 EUR. The terms of the loan are as follows:
duration of the loan = 10 years
(re)payments have to be made each six months (i.e., on 30/09 and 31/03, respectively):
o 2 500,00 EUR of
