What Must Investment Funds Do When Clients Fail to Repay on Time?

17:48, 10/07/2024

This is one of the key points to note in Circular 209/2015/TT-BTC guiding accounting applicable to local development investment funds issued by the Ministry of Finance on December 28, 2015.

When the customer fails to repay the debt on the due date under the Credit Agreement, the on-time principal debt becomes overdue debt. At this time, the accountant of the Investment Fund must closely monitor this in the management system and explain it in the financial statements, while decreasing the interest receivable on loans, recording as follows:

- Debit Account 511 - Revenue from professional activities (5111) (interest receivable recorded as revenue from professional activities in the same period), or- Debit Account 631 - Expenses from professional activities (63112) (if the interest receivable recorded in previous periods is included in expenses)- Credit Account 131 - Receivables from customers (1311).

At the same time, the accountant must continue to monitor in detail the interest receivable on loans off the Balance Sheet to urge collection and must explain it in detail in the financial statements.

See detailed information at Circular 209/2015/TT-BTC effective from February 11, 2016.

- Khanh Chi -

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