Accounting for transactions on assignment of right...

Accounting for assignment assignment transactions

In the economic activities of organizations there are situations when, having shipped goods, they can not receive the money due to them. In this case, the organization can give in to the right to demand a debt to another creditor, and subsequently itself to act as a new lender.

The assignment of assignment is based on the cession agreement . Assignment of the right of demand means a change in the creditor's obligation by entering into an agreement between the former and the new creditor (Article 382 of the Civil Code of the United States). The former creditor is called the assignor, and the new creditor is the assignee. The debtor-buyer must be notified of the transfer of the creditor's rights to another person.

The assignor and the assignee constitute the agreement on the assignment of the right of claim, which specifies: the name and details of the first creditor, the name and details of the new creditor, the amount of the debt to the first creditor, the amount of the assigned claim and the basis of the assignment, primary documents (freight invoices, invoices, contracts, settlement documents, etc.). Thus, receivables are actually sold and, as a rule, at a loss to the assignor. When the assignment of a claim under the cession agreement has taken place, the relationship between the supplier and the buyer under the original contract is terminated, that is, the debt of the buyer is closed and the assignee's debt arises at the same time.

If the receivable is sold at a higher value than it was under the original contract, then the organization generates other income, and from the amount of excess VAT is charged to the budget (at the time the cession agreement comes into force). In the event that the receivables were sold at a lower cost, the organization generates other expenses.

The assignee who has bought the right to claim receivables may assign it to a third party under the cession agreement and act himself as the assignor, i.e. will be the implementation of financial services. The accounting of transactions on the assignment of the right of claim from the assignor, the assignee and the assignment of the right of claim is illustrated in Table. 3.4.

Table 3.4

Corresponding Account Schemes for Accounting of Assignment Transactions

Account Correspondence

Content of operations

Debit

Credit

The assignor

62 "Settlements with buyers and customers"

90 Sales & quot ;, sub-account 1 Revenue

The sale of goods by accrual method is reflected

90 "Sales", sub-account 2 "Cost of sales"

41 Products

Written off items sold

90 Sales & quot ;, sub-account 3 VAT

68 Tax & fee calculations & quot ;, sub-account VAT calculations

VAT charged on the amount of goods sold

90 "Sales", subaccount 9 "Profit (loss) from sales"

99 Profits & Losses

The result of the sale of goods (profit) is reflected

76 "Settlements with different debtors and creditors", subaccount "Settlements with assignee"

91 Other Income & Expenses & quot ;, Sub-account 1 Other Income

The indebtedness of the assignee in the sale of receivables is reflected

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

62 "Settlements with buyers and customers"

The amount of accounts receivable under the original contract is written off

51 Current Accounts

76 "Settlements with different debtors and creditors", subaccount "Settlements with assignee"

Funds received under the cession agreement

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

68 Tax & fee calculations & quot ;, sub-account VAT calculations

VAT accrued from the amount of the excess of accounts receivable

91 & "Other Income & Expenses", sub-account 9 "Other Income & Expense Balance"

99 Profits & Losses

The financial result under the cession agreement (profit) is determined

In the assignee

58 Financial Attachments & quot ;, Subcount Assignment of Claims

76 "Settlements with different debtors and creditors", sub-account "Settlements with assignor"

Actual costs of acquiring the assignment of the right of claim are reflected

76 "Settlements with different debtors and creditors", sub-account "Settlements with assignor"

51 Current Accounts

The money was transferred to the assignor

76 "Settlements with different debtors and creditors", sub-account "Settlements with the debtor-buyer"

91 Other Income & Expenses & quot ;, Sub-account 1 Other Income

The amount of accounts receivable of the debtor-buyer is reflected

51 Current Accounts

76 "Settlements with different debtors and creditors", sub-account "Settlements with the debtor-buyer"

Received cash from the debtor-buyer

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

58 Financial Attachments & quot ;, Subcount Assignment of Claims

Costs written down on assignment of right of demand

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

68 Tax & fee calculations & quot ;, sub-account VAT calculations

VAT accrued from the sale of services

91 & "Other Income & Expenses", sub-account 9 "Other Income & Expense Balance"

99 Profits & Losses

The financial result from the sale of services (profit) is determined

When assigning a claim

76 "Settlements with different debtors and creditors", subaccount "Settlements with assignee"

91 Other Income & Expenses & quot ;, Sub-account 1 Other Income

The right to claim debt is transferred to a third party

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

58 Financial Attachments & quot ;, Subcount Assignment of Claims

The write-off of funds actually received under the cession agreement is reflected

51 Current Accounts

76 "Settlements with different debtors and creditors", subaccount "Settlements with assignee"

Received cash from the assignment of receivables

91 Other Income & Expenses & quot ;, Sub-Account 2 Other Costs

68 Tax & fee calculations & quot ;, sub-account VAT calculations

VAT accrued from the sale of services

91 & "Other Income & Expenses", sub-account 9 "Other Income & Expense Balance"

99 Profits & Losses

The financial result is determined from the assignment of the right of claim (profit)

99 Profits & Losses

91 & "Other Income & Expenses", sub-account 9 "Other Income & Expense Balance"

The financial result is determined from the assignment of the right of claim (loss)

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