What account does account 007 correspond with. Uncollectible debt from an off-balance account
Written off receivables must be reflected within 5 years on the off-balance account 007 in accordance with the legislation on accounting.
Does this requirement apply when writing off debts for bankrupt enterprises, if the debt is written off on the basis of an extract confirming the exclusion of the debtor from the Unified State Register of Legal Entities.
Organization accounting procedure accounts receivable account 007 regulates:
Order of the Ministry of Finance of the Russian Federation of July 29, 1998 N 34n "On approval of the Regulations on accounting and financial statements in Russian Federation"- further Order N 34n;
Order of the Ministry of Finance of the Russian Federation of October 31, 2000 N 94n "On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and instructions for its application" - further Order N 94n;
Accounting policy organizations.
In accordance with clause 77 of Order No. 34n:
"Accounts receivable for which the term limitation period has expired, other debts that are unrealistic to collect are written off for each obligation on the basis of the inventory data, written justification and order (instruction) of the head of the organization and are attributed, respectively, to the account of the reserve for doubtful debts or to financial results at commercial organization, if in the period preceding the reporting period, the amounts of these debts were not reserved in the manner prescribed by paragraph 70 of this Regulation, or for an increase in expenses from a non-profit organization.
Writing off a debt at a loss due to the insolvency of the debtor is not a cancellation of the debt. This debt should be reflected in balance sheet within five years from the date of write-off to monitor the possibility of its recovery in the event of a change property status debtor".
In accordance with the Instructions for the use of the Chart of Accounts, approved. Order N 94n:
"Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the state of receivables written off at a loss due to the insolvency of debtors. This debt should be taken into account off the balance sheet within five years from the date of write-off to monitor the possibility of its collection in the event of a change in property position of debtors:
Analytical accounting on account 007 "Debt of insolvent debtors written off at a loss" is kept for each debtor whose debt is written off at a loss, and for each debt written off at a loss.
Additional features may be regulated by the accounting policy of the organization analytical accounting, for example, separate accounting of various types of debts: by reason of occurrence, by date of occurrence, etc.
Output
In accordance with regulations in accounting, accounting on an off-balance account 007 implies:
(a) the existence of a debtor;
B) the presence of debt;
C) the potential for debt collection.
According to Art. 419 of the Civil Code of the Russian Federation liquidation legal entity the obligation is terminated, except for cases when, by law or other legal acts, the fulfillment of the obligation of a liquidated legal entity is assigned to another person (for claims for compensation for harm caused to life or health, etc.).
Because making an entry in the Unified State Register of Legal Entities means the liquidation of the debtor, the consequence of which is the termination of the debt, therefore, there are no corresponding accounting objects for accounting on the off-balance account.
Output
Upon liquidation of an organization, there are no accounting objects (debt, debtor) to be reflected on the off-balance sheet account 007 "Debt written off at a loss of insolvent debtors", therefore there are no grounds for the formation of appropriate accounting records.
According to paragraph 8 of Art. 22 federal law dated 08.08.2001 N 129-FZ "On state registration legal entities and individual entrepreneurs":
"Exclusion of an inactive legal entity from a single state register legal entities may be appealed by creditors or other persons whose rights and legitimate interests are affected in connection with the exclusion of an inactive legal entity from the unified state register of legal entities, within a year * (1) from the day they learned or should have learned about the violation of their rights.
The basis for recognizing the act of the registering body on the exclusion of an inactive legal entity from the Register as invalid is the non-compliance of this act with the law, otherwise legal acts and violation of the rights and legally protected interests of a citizen or legal entity (Article 13 of the Civil Code of the Russian Federation).
An entry on the credit of the off-balance account 007 is also made if:
- the 5-year period for recording this information has expired;
- the debtor is liquidated.
Inventory of objects recorded on account 007 The article has already mentioned the need for an inventory. The organization must check the condition of all its property. Including property that does not belong to her, but is listed in accounting, as well as not taken into account for any reason. Thus, all off-balance accounts are also subject to inventory, including. In what order is the inventory of assets taken off the balance sheet, what are the specifics of the inventory of these objects, see the article “Is inventory provided for off-balance accounts”.
What is transferred to the off-balance account 007?
Written off receivables must be reflected within 5 years on the off-balance account 007 in accordance with the legislation on accounting. Does this requirement apply when writing off debts for bankrupt enterprises, if the debt is written off on the basis of an extract confirming the exclusion of the debtor from the Unified State Register of Legal Entities.
The procedure for accounting for accounts receivable by an organization on account 007 is regulated by: - Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 N 34n “On approval of the Regulation on accounting and financial reporting in the Russian Federation” - further Order N 34n; - Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No.
N 94n "On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and instructions for its application" - hereinafter Order N 94n; — Accounting policy of the organization. In accordance with par.
Account 007 "debt written off at a loss of insolvent debtors"
Conclusion During the liquidation of the organization, there are no accounting objects (debt, debtor) to be reflected on the off-balance sheet account 007 “Debt of insolvent debtors written off at a loss”, therefore there are no grounds for the formation of appropriate accounting entries. According to paragraph 8 of Art. 22 of the Federal Law of 08.08.2001 No.
N 129-FZ "On State Registration of Legal Entities and Individual Entrepreneurs": "The exclusion of an inactive legal entity from the unified state register of legal entities may be appealed by creditors or other persons whose rights and legitimate interests are affected in connection with the exclusion of an inactive legal entity from the unified state register register of legal entities, within a year*(1) from the day they learned or should have known about the violation of their rights.”
How to write off bad debts
Add to favorites Send to e-mail Off-balance account 007 - "Debt written off at a loss of insolvent debtors". What is an account by balance, how to work with it, what information is collected on account 007 and in what cases it is kept on record, can be found in this article.
Attention
general characteristics off-balance account Accounting on an off-balance account 007 Inventory of objects recorded on account 007 Results General characteristics of an off-balance account As a result of activities, an organization has assets that do not belong to it, but are listed for a period of temporary use or storage. Off-balance sheet accounts are designed to account for this type of assets.
Their accounting is determined by the Chart of Accounts and instructions to it, approved by order of the Ministry of Finance dated October 31, 2000 No. 94n.
Write-off of receivables in accounting and tax accounting.
The basis for recognizing the act of the registering authority on the exclusion of an inactive legal entity from the Register as invalid is the inconsistency of this act with the law, other legal acts and its violation of the rights and legally protected interests of a citizen or legal entity (Article 13 of the Civil Code of the Russian Federation). Thus, in the event that in the process of claim work legal services organizations (or other persons) will be in judicial order the act of the registering authority on the exclusion of a legal entity from the Unified State Register of Legal Entities is declared invalid, the relevant documents must be transferred to the accounting department of the organization.
On the basis of these documents in the accounting of the organization, receivables previously written off in connection with the liquidation of the debtor are subject to restoration.
Account 007 "debt written off at a loss of insolvent debtors"
ACCOUNT 007 "DEBT WRITTEN OFF OF LOSS OF INSOLVENT DEBTORS" Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the status of receivables written off at a loss due to the insolvency of debtors. This debt should be taken into account off the balance sheet within five years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtors.
Accounts 50 “Cashier”, 51 “Settlement accounts” and 52 “Currency accounts” are debited for the amounts received in order to collect the debt previously described as a loss in correspondence with account 91 “Other income and expenses”. At the same time, off-balance account 007 “Debt of insolvent debtors written off at a loss” is credited for the indicated amounts.
Info
The legal term is 3 years. This debt is determined to be uncollectible and is written off either against an allowance for doubtful debts or against other expenses. A bad debt is written off in the presence of an inventory act and an order from the head.
You can learn more about the procedure for writing off accounts receivable in the article “Procedure for writing off accounts receivable”. According to accounting rules, data on debtors and their amounts should not disappear during the period when this information is written off. The debt must remain in storage behind the balance sheet for another 5 years from the date of write-off in order to restore it in case of a change financial position debtor. For this purpose, account 007 “Debt of insolvent debtors written off at a loss” is intended.
Important
The peculiarity of off-balance sheet accounts is that the amounts business transactions are not cross-registered on the debit of one and the credit of another account, but only pass on the debit or credit of such an account. Find out which accounts are called off-balance sheet, which normative documents the accounting procedure for them is established, it is possible in the article “Rules for maintaining accounting on off-balance accounts”.
Accounting on an off-balance account 007 Each enterprise must conduct an inventory of property, receivables and accounts payable. Inventory in without fail held once a year before financial reporting or more often - according to the applicable accounting policy.
In the course of the inventory, receivables that need to be written off are often identified, namely, debts that are uncollectible, receivables for which the limitation period has expired.
On the off-balance account 007 there is a written-off debt 5 years have passed how to remove
Order N 34n: “Accounts receivable for which the limitation period has expired, other debts that are unrealistic to collect, are written off for each obligation based on the inventory data, written justification and order (instruction) of the head of the organization and are credited accordingly to the account of the reserve for doubtful debts or on the financial results of a commercial organization, if in the period preceding the reporting period, the amounts of these debts were not reserved in the manner prescribed by clause 70 of this Regulation, or on an increase in expenses of a non-profit organization. Writing off a debt at a loss due to the insolvency of the debtor is not a cancellation of the debt.
The accounting policy of the organization may regulate additional features of analytical accounting, for example, separate accounting for various types of debts: by reason of occurrence, by date of occurrence, etc. Conclusion In accordance with the regulatory acts on accounting, accounting on an off-balance account 007 implies: A) the presence of a debtor; B) the presence of debt; C) the potential for debt collection.
According to Art. 419 of the Civil Code of the Russian Federation, the liquidation of a legal entity terminates the obligation, except when, by law or other legal acts, the fulfillment of the obligation of the liquidated legal entity is assigned to another person (for claims for compensation for harm caused to life or health, etc.). Because
Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the state of receivables written off at a loss due to the insolvency of debtors. This debt should be taken into account off the balance sheet within five years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtors. Accounts 50 "Cashier", 51 "Settlement accounts" or 52 "Currency accounts" in correspondence with account 91 "Other income and expenses" are debited for the amounts received in the order of collection of debt previously written off at a loss. At the same time, off-balance sheet account 007 “Debt of insolvent debtors written off at a loss” is credited for the indicated amounts.
This debt is accounted for separately for each debtor and basis. During the period of accounting for written-off receivables on an off-balance sheet account, it is necessary to monitor changes in the property status of the debtor in order to identify the possibility of repaying the debt.
In case of return of debts previously written off at a loss, accounting accounts are debited Money in correspondence with the other income account. At the same time, an entry is made: Kt 007. Thus, the entries will be as follows: Dt 50 (51, 52) Kt 62 (58, 60, 76) - money received from the debtor D 62 (58, 60, 76) K 91 - credited to income debt that has been returned. Kt 007 - the returned debt is removed from the off-balance account.
Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the state of receivables written off at a loss due to the insolvency of debtors. This debt should be taken into account off the balance sheet within five years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtors.
For amounts received in the order of collection of debt previously written off at a loss, debited bills 50"Cashier", "Settlement accounts" or "Currency accounts" in correspondence with score 91"Other income and expenses". At the same time, off-balance account 007 "Debt of insolvent debtors written off at a loss" is credited for the indicated amounts.
Analytical accounting on account 007 "Debt written off at a loss of insolvent debtors" is kept for each debtor whose debt is written off at a loss, and each debt written off at a loss.
Chart of accounts application: account 007
- STS "income minus expenses": the procedure for writing off bad debts for utilities
All of the above grounds*(7). An inventory of receivables should be carried out according to the rules ... debt. This debt should be reflected off the balance sheet on account 007 "Debt written off as a loss of insolvent debtors" within ... within five years from the date of write-off for ... consulting GARANT, March 2019)). * (7) In accounting policy for accounting purposes ...
- Non-operating expenses, the procedure for recognition and reflection in accounting and reporting
Account 007 “Debt of insolvent debtors written off at a loss”, designed to summarize information on the state of receivables written off due to the insolvency of debtors. B... was handed over to the carrier on 7 February. The foreign buyer repaid the debt on February 12. According to ... February - 30.40 rubles / USD; - February 7 - 30.50 RUB / USD ... Reflected actual cost shipped goods February 7 62 90-1 305 ...
- Write-off of accounts receivable
It is necessary to follow par. 3 p. 7 art. 272 of the Tax Code of the Russian Federation, based on ... cancellation of debt. This debt should be recorded on the off-balance account 007 "Debt written off as a loss of insolvent debtors" within ... 5 years. According to the Chart of Accounts approved by...
- Reflection of receivables and payables in financial statements
7) 73 “Settlements with personnel on other transactions” (the occurrence of debt ... the moment of writing off the amount of debt written off is accounted for the balance on account 007 “Debt written off at a loss of insolvent debtors”, intended in accordance with ... information on the status of receivables written off due to insolvency of debtors. This is established ... by accounting. Written off debt of insolvent debtors is reflected in line 940. ...
- The procedure for writing off accounts receivable, documentation
From the moment of write-off, the amount of the written-off debt is accounted for the balance on account 007 “Debt written off at a loss from insolvent debtors”, intended to ... summarize information on the state of receivables written off due to the insolvency of debtors. In ... half a year, the revenue of LLC "A" amounted to 7,000,000 rubles. 25 Chapter... No. КА-А40/1128-03, dated August 7, 2000 in the case...
- Features of reflection of certain types of losses in tax and accounting
Natural disasters or emergencies; 7) losses under the transaction of assignment of rights ... write-offs on account 007 “Debt of insolvent debtors written off at a loss”. Consider the reflection in accounting of operations to write off bad receivables .... 18 Guidelines). Downtime costs include: - material costs ...) and the amount of the assigned debt, in accordance with paragraphs. 7, paragraph 2, article ... dated 10.31.00 No. 94n. Guidelines for the use of gla...
- When to write off arrears
In accounting, writing off a debt at a loss due to the insolvency of the debtor is not a cancellation of the debt. This debt ... should be reflected in the balance sheet on off-balance account 007 "Debt written off at a loss of insolvent debtors ..." within five years from the date of write-off for ... from Art. 6 and 7 of the Federal Law of 08.08. ...
- Write off overdue accounts receivable
According to the application of the Chart of Accounts, it was established that account 007 "Debt written off at a loss of insolvent debtors" reflects ... information on the state of receivables written off at a loss due to insolvency ...) of the period in which bad debt subject to write-off (clause 3 clause 7 article 272 ...
- Deadlines for writing off receivables
09/[email protected]"On the approval of the procedure for providing in in electronic format information contained in a single ... basis for recognizing the debt as uncollectible and writing it off at a loss, equated for the purposes of ... the organization to write off the debt. This debt should be reflected in the balance of account 007 “Debt written off as a loss of insolvent debtors” within ... five years from the date of write-off for ...
- What reserves in accounting simplifiers must create
Purposes of accounting (clauses 6 and 7 of PBU 1/2008 “Accounting ... accounting purposes (clauses 6 and 7 of PBU 1/2008 “Accounting ... is impossible (clause 77 of the Regulation). Write-off of receivables is possible only if corresponding to ... account 007 "Debt written off at a loss of insolvent debtors". An entry is made: DEBIT 007 - written off receivables are reflected. In ... policy for accounting purposes (clause 7 PBU 1/2008). Or ...
- Allowance for doubtful debts: accounting nuances
The debt within 5 years from the date of write-off is reflected on the off-balance account 007 "Debt written off at a loss of insolvent debtors ... / 184, etc.) In turn, according to paragraph 7 of paragraph 1 of article .... 265 of the Tax Code of the Russian Federation, non-operating ... application of the accrual method in tax accounting is regulated by paragraph 7 of article 272 of the Tax Code ... of the Russian Federation. For expenses in the form of written-off receivables from ... similar expenses) (paragraph 3 of paragraph 7 of article 272 of the Tax Code of the Russian Federation) .This is...
- Voluntary liquidation of a legal entity
CPT 5 5 0 7 0 3 7 4 5 2 / ... CPT 5 5 0 7 0 3 7 4 5 2 / ... clarifications on filling in the forms: “7. In the line following the title of the sheet... consumables issued during the inventory period. 7. A comparison is being made ... account 007 “Debt written off as a loss of insolvent debtors”, designed to summarize information on the state of receivables written off due to the insolvency of debtors. B... accruals. This is indicated in subparagraph 7 of paragraph 1 of Article 265 ...
- The limitation period has expired on the advance payment listed by the supplier: we restore VAT
In this way, accounts receivable are written off in accounting and tax accounting with the expiration of the period ... in this way, accounts receivable are written off in accounting and tax accounting with the expiration of the period ... it independently, fixing it in its accounting policy (clause 7 PBU 1/2008 .. ... The debt after its write-off within 5 years is reflected in the off-balance account 007 "Debt of insolvent debtors written off at a loss ...
- What to look for when preparing annual financial statements for 2017
Balance on account 96 "Reserves for future expenses"). Incorrectly reflected is not written off debt with ... collection of this debt. The written-off accounts receivable are subject to accounting for the balance on account 007 “Debt written off at a loss of insolvent debtors” within ... five years from the date of write-off for monitoring ... . up to 500 rubles Art. 19.7 Administrative Code of the Russian Federation We offer you a classic ...
the current legislation on accounting provides for the need to reflect off the balance sheet (on account 007) any receivables written off at a loss due to the insolvency of debtors (see Chart of Accounts and Instructions for its application below). Therefore, the off-balance sheet 007 should reflect, among other things, the written-off receivables of employees and the written-off tax receivables.
The rationale for this position is given below in the materials of the Glavbukh System "
The organization must write off bad debts in accounting in a timely manner and recognize it in tax accounting.
Cases of accounts receivable
In accounting, the write-off of receivables at the expense of the allowance for doubtful debts reflect the posting:
Debit 63 Credit 62 (58-3, 71, 73, 76...)
- written off accounts receivable at the expense of the created reserve.
The reserve can only be used within reserved amounts. If during the year the amount of expenses for writing off the debt exceeds the amount of the created reserve, reflect the difference as other expenses (paragraph 11 of PBU 10/99).
When writing off the difference, make a posting:
Debit 91-2 Credit 62 (58-3, 71, 73, 76...)
- written off receivables not covered by the provision.
The write-off of receivables that have expired, or other debts that are uncollectible, is not a cancellation of the debt. Therefore, within five years from the date of write-off, reflect it behind the balance on account 007 “Debt of insolvent debtors written off at a loss” (Instructions for the chart of accounts):
Debit 007
- written off receivables are reflected. *
During this period, monitor the possibility of its recovery in case of a change in the property status of the debtor (clause 77 of the Regulations on Accounting and Reporting).
Sergei Razgulin,
Acting State Councilor of the Russian Federation, 3rd class
2. Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94N “On Approval of the Chart of Accounts for Accounting for the Financial and Economic Activities of Organizations and Instructions for Its Application”
Account 007 "Debt of insolvent debtors written off at a loss"
Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the state of receivables written off at a loss due to the insolvency of debtors. This debt should be taken into account off the balance sheet within five years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtors.*
For amounts received in the order of collection of debt previously written off at a loss, debited
Insolvent Debtors account designed to summarize information on the status of receivables written off at a loss due to insolvency of sources. This debt should be taken into account off the balance sheet within 5 years from the date of write-off to monitor the possibility of its collection in the event of a change in the debtor's property status.
Dictionary of business terms. Akademik.ru. 2001 .
See what "Accounting Account 007 Written Off Debt of Insolvent Debtors" in other dictionaries:
Glossary of business terms
ACCOUNTING ACCOUNT 007 WRITE-OFF DEBT OF INSOLVED DEBTORS, OFF-BANK- an account designed to summarize information on the state of receivables written off at a loss due to the insolvency of sources. This debt must be accounted for off the balance sheet within 5 years from the date of write-off for ... ... Big Economic Dictionary
007 account- Account 007 "Debt written off at a loss of insolvent debtors" is intended to summarize information on the state of receivables written off at a loss due to the insolvency of debtors. This debt must... Accounting Encyclopedia
Chart of accounts- a system of accounting accounts, providing for their number, grouping and digital designation, depending on the objects and purposes of accounting. The Chart of Accounts includes synthetic accounts of the first order and sub-accounts or accounts of the second order. ... ... Accounting Encyclopedia
The Chart of Accounts is a system of accounting accounts that provides for their number, grouping and numerical designation depending on the objects and purposes of accounting. The Chart of Accounts includes both synthetic (first-order accounts) and related ones ... ... Wikipedia