O Term Loans

The O workpapers calculate the interest portion to accrue for the year, the apportionment required for private use of a business asset and the current portion of term loans.

Suggested supporting documents

  • Bank statements
  • Loan agreement
  • Year-end interest statements

Terms loans lead sheet

CCH Workpapers provides workpapers to record up to 10 term loans. The lead sheet provides a summary of all loans including the private and business portions of loans. The lead sheet is populated using the O1 workpapers.

Term loan workpapers

Enter details of the loan in the header of the worksheet. If you have you used CCH Workpapers in previous years, you can roll forward this information using the Rollover data function from the CCH Workpapers ribbon.

  1. Lender: The entity from whom the money was borrowed.
  2. Loan #: The account number of the loan.
  3. Private %: The percentage of the loan related to private use/ percentage of asset purchased with loaned funds is used for private purposes.
  4. Loan purpose: What the loan funds relate to.
  5. Drawdown date: The date the funds were drawn down.
  6. Repayment date: The expected end date of the loan.
  7. Principal: The amount of funds borrowed (excluding interest).
  8. Term: The number of month or years expected to repay the loan and the unit used e.g. 36 months or 3 years.

Accrual details

Where interest is to be accrued in the accounts enter details in rows 14 and 15.

  1. Select the tick-box in cell F14 to calculate interest accruals.
  2. Enter details of prior year accruals in cell F15, this will be automatically populated where you have rolled forward data (see above).

Enter current year loan transactions

  1. Enter opening balance of the loan account per the General Ledger, this should be populated based on imported data. If the amount has not been populated, manually enter the opening balance in cell J17.
  2. Enter details of any advances made i.e. further funds drawn down on the loan.
  3. Enter details of payments made during the year.
    1. Enter the amount of the repayment and the number of times the repayment amount was made during the year.
    2. Space has been provided to record where repayment amounts increase during the year.
  4. Enter details of any lump sum payments made during the year in the “other payments” box.
  5. From the loan statement, enter details of the total interest charged for the year in cell J35.

Calculate current portion and interest accrual

Use this table where you record interest accruals and or separate the current and term portion of the loan in the financial statements.

  1. Enter the number of pay periods during the year, for example 12 if repayments are made monthly.
  2. Enter details of the interest rate applicable as at balance date.
  3. Enter details of the last repayment date in cell E53, if interest was not paid on the last repayment date, enter the date the last payment which was applied to interest occurred.
  4. Interest only loans:
    1. Leave the monthly repayment box empty.
    2. Make sure the remainder of the boxes in the table has been populated.
    3. Select the Goal Seek button – this will calculate the repayment and interest amounts for the upcoming year.
  5. Interest and principal loan repayments:
    1. Enter details of the repayment amount.
    2. Do not select the goal seek button.
    3. The interest and repayment amounts for the upcoming year will be populated.

Create journal

The loan workpapers can automatically create a journal to record the interest accrual, the current portion of the loan for the upcoming year, and the term portion of the loan.

Enter account codes of the accounts detailed in column B.

See Create a journal automatically for further assistance.