314 – Notes Payable – Other

Current Liabilities

Accounts & Notes Payable

Synopsis

Account 314

Debits

Credits

  1. Payments on notes.

 

  1. The principal amounts due financial institutions on notes or contracts other than those secured by new vehicles, demonstrators, used vehicles, or vehicles in lease, rental, or driver education service.

 

Remarks:

This account should include such items as: notes payable on permanent company vehicles; notes payable on other inventories such as motor homes, boats, motorcycles, farm equipment, etc.; and short-term notes (maturing within twelve months) payable to financial institutions, subsidiaries, and affiliates, officers and partners.

A detail of notes should be made in this account or suitable subsidiary record.

A month-end schedule of unpaid notes should be prepared and should be in agreement with the balance in the general ledger account.

Note: