Short-Term Debt

In accounting, the debt is the sacrifice of economic benefits in the future that may occur due to the obligation of an enterprise at the present time to transfer assets or provide services to other entities in the future as a result of past transactions or events.Debts which become the obligation of a company are grouped in two groups: short-term debt and long-term debt. In principle, the debt will be posted at the cash value of these debts, but generally short-term debt will be included in the amount of its nominal value. Deviation is done with the assumption that the difference between the nominal value of its cash value is relatively small. Restrictions that are commonly used to classify the debt is a period of operating cycle or within one year is classified as short-term debt. Because the company's business cycle is different, so the above limitations as less able to fulfill, and therefore limits the use changed as follows:
A liability would be classified as short-term debt when repayment will be dilakukkan by using the resources or assets lancer with menimnulkan new short-term debt.
With these restrictions, the difficulties arising from differences in duration of business cycles can be overcome. Short term the company will be divided into 3 sections:
A. Short-term debt amount can be determined
Terms:
- The obligation to pay is certain (already happened transactions that give rise to the obligation to pay)
- The amount to be paid is certain

The type of debt that meets these two conditions:
- Accounts payable and debt notes
Usually arising from the purchase of goods or services and from short-term loans. In determining the amount of short-term debt payable should be calculated on the goods purchased are still in transit. Recording of debt on the purchase of goods still in transit should consider the terms of delivery.
Existing debt secured notes and unsecured. It includes money orders, money orders issued for the purchase of goods or services, short-term bank pinjamanan, employees or shareholders and for the purchase of machinery and tools.

- Long-term debt falling due in that period
Bond debt and long-term debt will be repaid more than one year are reported as short-term debt. If that is due only in part, the part that is due in that year are reported as short-term debt, which is not due in that period will be paid with funds from the proceeds of redemption or sale of new bonds or stock will be exchanged, then Long-term debt was still reported as long-term debt. Although still callable in one year, but because it is not repaid by the source of current assets and short-term debt does not pose a new one, it is not classified in the short-term debt.

- Debt dividend
Yes ng dividend distributed in the form of cash or assets (if not already paid) shall be recorded by debiting and crediting the profit is divided by debt dividend. Because this debt dividend will be paid then included in the short-term debt. Debt was incurred at the time of dividend announcement dividend payable by the board of directors and until the date of payment. Dividend to preferred shares, although the number is uncertain but prior to the date of the announcement has not merupaan debt. Debt in the form of stock dividend (stock dividend) recorded profits are not shared with debit and credit dividend shares to be divided. Loans are made to record the stock dividend to be divided is not included in the short-term debt but it is a capital element.

- Advances and deposits that can be asked to re-
An upfront payment from the buyer for the goods ordered. Before the goods delivered to the buyer, such advances are short-term debt.
Requested assurance from subscriptions also merupaka debt, if the bond may be withdrawn at any time, it is a short-term debt. But if you guarantee it will be stored in the company for a long time, it was among the long-term debt.
- The funds collected to third parties
Sometimes companies will be those who collect money from customers or employees that will be handed over to the other party. This fundraiser can be done by an employee wages or burdening pemoyongan buyer with specific amounts.
Example: each pay staff salaries cut 15% as employee income taxes that will be deposited into the state treasury. Tax withheld by the company are recorded as debt.
The Company is subject to value added tax (VAT) will this charge VAT to the buyer, by adding VAT to the VAT sales price received is recorded as a debt until the time of remittance into the State treasury.
- Debt costs (costs that will still be paid)
Arising from the accounting recognition of the costs already incurred but not yet paid. This group included the debt arising from salaries and wages, bonuses, rents and others.
- Income received in advance.
Amount received from subscriptions for goods and services to be delivered in future periods are recorded as revenue received in advance and is reported under short-term debt group.

2. Short-term debt whose numbers are not yet defined
3. Debts is conditional
Conditional debts are debts that arrive at the balance sheet date is uncertain whether it will be mandatory or not. Such debts arising from the previous days activities. To determine whether a debt is owed or the estimated conditional debt, essentially the certainty of the onset of the obligation. If the financial penalty that would arise, although the number is uncertain then the debt is estimated this type of debt. But if the obligation to pay it is still uncertain, perhaps it is definitely or probably also uncertain., Then such debts are debts conditional. So there are real differences between the estimated conditional debt is debt with certainty the onset of a financial penalty rather than the certainty of the amount. Included in the debt conditional:
• discounted notes receivable and accounts receivable as collateral
• conditional endorsement on note-note
• legal dispute
• Additional tax certainty is not yet clear
• Guarantee of subsidiary debt
• Guarantees against falling prices of goods sold


NPM : 21209308
source : Baridwan,Zaki. April 2004.Intermediate Accounting Edisi kedelapan.BPFE-Yogyakarta.Yogyakarta