315 – Notes Payable – Current Amount – Long Term Debt

Current Liabilities

Accounts & Notes Payable

Synopsis

Account 315

Debits

Credits

  1. Principal payments made in notes, contracts or mortgages that are due and payable within the succeeding twelve months.

  2. Principal amounts of long-term notes or mortgages payable to finance institutions or other sources including officers, partners, etc., maturing within the succeeding twelve months.

  1. Portion of a long-term note, contract or mortgage that is due and payable within the succeeding twelve months, AFTER all long-term debt recorded in Accounts 341, 347, and/or 344 has been exhausted.

 

Remarks:

A subsidiary schedule should support this account.

At month-end, a listing of the current amounts due on each long-term loan should be prepared and the total reconciled with the balance in this account.

Principal payments made on notes, contracts or mortgages will be debited to this account when applicable to payments for the last twelve months of the obligation.

Interest payable on current portion of long-term debt should be recorded monthly and charged to Other Interest – Account 93.

Note: