Education at Lviv Polytechnic

Accounting, analysis and control of bank loans LLC “Equipment for business”

Students Name: Hut Sofiia Tarasivna

Qualification Level: magister

Speciality: Accounting and Taxation

Institute: Institute of Economics and Management

Mode of Study: part

Academic Year: 2021-2022 н.р.

Language of Defence: ukrainian

Abstract: Hut S.T. Lemishovska O.S. (supervisor). Accounting, analysis and control of bank loans LLC “Equipment for business”. Master’s thesis. - Lviv Polytechnic National University, Lviv 2021. EXTENDED ABSTRACT The process of enterprise development at its various stages requires borrowing. The main role in stimulating reproductive processes in a market economy is played by bank credit, as a fundamental source of providing financial resources for economic activities of enterprises [1]. The object of research is accounting, analysis and control of bank loans. The subject of research - the organization and methods of accounting, analysis and control of bank loans LLC "Equipment for Business". The purpose of the study: generalization of theoretical, legal, regulatory, methodological and practical aspects of accounting, analysis and control of bank loans at the enterprise, as well as development of practical recommendations for forming an effective organizational and control mechanism for attracting, using and repaying bank loans. Research results This paper presents the economic content, classification and reflection in accounting, as well as reveals the organization and methods of analysis of bank loans of the enterprise and the theoretical foundations of control over the receipt, use and repayment of bank loans. The results of economic activity of Technique for Business LLC, its accounting policy and the analysis of the company’s debt capital and its creditworthiness are described. The main issues of the organization of accounting of LLC "Equipment for Business" are defined, the main stages of the accounting process are described and the essence of the organization and methods of control in the company is revealed. Recommendations and proposals for improving accounting, analysis and control in LLC "Equipment for Business" are given. According to research, it is established that expanding the economic range of the enterprise, ensuring more efficient use of equity, accelerating the formation of various trust funds and increasing the market value of enterprises is possible through the use of bank loans. After all, although equity is the financial basis of any enterprise, but does not provide effective economic activity without constant borrowing [2]. The results of the analysis show that the growth of borrowed capital of LLC "Equipment for Business" was due to an increase in its activities, which required additional capital in the company’s turnover and increased costs for the company’s own needs. Long-term loans from LLC "Equipment for Business" are growing faster than short-term loans, which indicates the need for long-term loans. The results of the analysis show that the growth of borrowed capital of LLC "Equipment for Business" was due to an increase in its activities, which required additional capital in the company’s turnover and increased costs for the company’s own needs. Long-term loans from LLC "Equipment for Business" are growing faster than short-term loans, which indicates the need for long-term loans. To determine the list of indicators that most objectively characterize the financial condition of the borrower and its ability to repay future loans, the paper analyzes the components of the most common methods of assessing the financial condition and probability of bankruptcy of enterprises used in Ukraine and abroad [3]. Necessary documents of LLC "Equipment for Business" for obtaining a loan are: loan application, borrower’s application form, copy of constituent documents, copy of registration certificate, loan security documents, insurance documents, information on obtaining loans from other banks, financial company reporting. The process of organizing the receipt of bank loans involves the borrower to apply to the chosen banking institution with a specific package of documents. If necessary (until the loan is granted or in the process of further control), the borrower additionally submits internal financial and management reports, cash flow statement, data on receivables and payables, as well as tax and customs declarations, lease documents, etc. [4]. LLC "Equipment for Business" uses a well-established internal control system and a separate (audit) department, which performs the function of control in the company. Internal control helps the company to achieve its goals by assessing, summarizing and improving the effectiveness of management in the process of economic activity. It is recommended that Technique for Business Ltd. allocate a separate section for bank loans in its accounting policy, in which it discloses all important provisions of their accounting and uses analytical accounting of bank loans in terms of national currencies in its activities. Also, the accounting department of "Equipment for Business" LLC is recommended to keep a schedule of repayment of payments on bank loans or make a detailed calculation of the monthly payment under the loan agreement. The auditing department of the company needs to develop a program of control procedures for accounting for bank loans, which will be able to provide a detailed inspection of each related to the accounting for the receipt, use and repayment of bank loans LLC "Equipment for Business". Keywords: accounting, analysis, control, bank loans, interest on the loan. References: 1.Trach S.S. Banking lending in Ukraine: domestic and international experience of the United States and Great Britain / SS Trach. Trach // Scientific Bulletin of the National Academy of Internal Affairs. - №4. - 2014. - P.233-244. 2. Kobylyanska O.I. Financial credit as a form of attracted capital: economic essence, the process of obtaining, repayment, taxation and reflection in accounting / O.I. Kobylyanska, S.I. Seiko // Accounting and Finance of AIC. - 2010. - №2. - P.30-383. Konoplytsky V.A., Filina A.I. Marketing, market, finance. Glossary - reference book. - K .: "Imex", 2002. - 184 p. 3. Markovic T. G.Analysis of the creditworthiness of the business entity-exporter using the theory of fuzzy sets / T.G. Markovich // Electronic scientific professional publication "Effective Economics" №7. - 2019. - Electronic resource. - Access mode: http://www.economy.nayka.com.ua/pdf/7_2019/123.pdf 4. Oliynyk Ya. V. Organizational and legal aspects of accounting for bank loans / Ya. V. Oliynyk // Formuvannia rynkovoi ekonomiky: zb. Science. etc. / Ministry of Education and Science, Youth and Sports of Ukraine, "Kyiv. nat. econ. Univ. Vadim Hetman ";. - Kyiv: KNEU, 2011. - Issue. 25. - P. 521–529.