Q&A: banking

Comparing rates alone is not enough. Closing the old loan and taking a new one (loan refinancing) also involves a fee and early repayment costs. The right question: in how many months will the savings on the rate cover these costs?

Calculation steps: 1. Calculate the remaining balance of the old loan and the total amount to be paid over the remaining term. 2. Calculate the total amount to be paid on the new loan over the same term. 3. Deduct the one-time costs (loan fee, early repayment charge, valuation, insurance and others) from the difference between the two. 4. One-time costs ÷ savings in the monthly payment = payback period.

Example (compiled by the author, hypothetical). The old loan of "Korasuv non" LLC: balance 150 million soums, remaining term 12 months, 28% per year, equal payments (annuity). The new bank: 24% per year, 12 months, annuity; loan origination fee — 1.5% of 150 million soums. The old bank charges 1 million soums for early repayment (hypothetical). The calculation, checked with Python:

Savings on interest: 173.71 − 170.21 ≈ 3.50 million soums (≈ 0.292 million per month). One-time costs: 150 × 0.015 + 1.0 = 3.25 million soums. Net savings: 3.50 − 3.25 ≈ 0.25 million soums. Payback period: 3.25 ÷ 0.292 ≈ 11.1 months, that is, almost the whole term goes to these costs.

Conclusion: even though a 4 percentage point difference looks large, with a short remaining term the savings are eaten up by the costs. If the remaining term is long or the fee is low, the result is different: for example, with no fee and if the old bank charged no penalty, the savings would be 3.50 million soums. So calculate each offer separately.

Accounting entries (NAS No. 21, paragraph 296): the new loan is received — Dt 5110 – Ct 6810 (line 1 "Receipt of short-term loans and borrowings"); the old loan is repaid (the old loan is also taken as short-term) — Dt 6810 – Ct 5110 (line 4 "Repayment of short-term loans and borrowings"). Under paragraph 291 of NAS No. 21, account 6810 is for short-term loans (up to 12 months); since the new loan term is 12 months, this account was used in the example. A loan with a longer term is kept on the long-term loans account. The accounting for the fee and the early repayment charge depends on the content of the contract and is not covered here.

Note: the simple calculation does not take the time value of money into account. In real life, read in the contract the payment schedules of both banks, the interest calculation method (daily on the balance, year of 360 or 365 days) and additional terms (covenants, collateral). When comparing rates, add up all payments rather than looking only at the "annual percentage".

Source: NAS No. 21, paragraphs 291 and 296 (lines 1 and 4 in paragraph 296); annuity payment formula (general financial calculation). The example was compiled by the author.

To decide, you need to count not only the bank commission but also the hidden costs of paying in cash. With cash payments, the money is withdrawn from the bank, transported, kept in the cash desk, counted and handed to each employee against a payroll sheet. Each of these takes time, money and risk.

Bank tariffs and conditions vary, so redo the calculation below with your own bank's tariff.

Example (prepared by the author, hypothetical figures). "Oqtepa mebel" has 40 employees, and the monthly payroll (the amount paid out to employees) is 240 million soums.

Under these conditions, transferring to cards is about 1.7 million soums a month cheaper. In addition, there are benefits that do not fit into the table:

1. Risk falls: no large amount of cash is kept in the cash desk, and there is no risk of loss or theft while transporting it.
2. Errors fall: disputes over shortfalls when counting cash and over overpaid amounts disappear.
3. A trail remains: every payment is visible in the bank statement, which is convenient for internal control and inspections.
4. Convenient for employees: the salary arrives on the card on the set day, and there is no need to queue during working hours.

Questions to ask when agreeing with the bank:

1. Who bears the commission: the company or the employee? How much do opening a card, annual servicing and cash withdrawals cost for employees?
2. Does the commission fall or disappear if the number of employees or turnover exceeds a certain level?
3. When does the salary reach the employee's card: the same day or the next day?
4. How is the list sent: through the bank's software, or can a file be uploaded from the accounting software?

Cash may be more convenient for some employees. Explain to them in advance how to withdraw money from the card and where they can pay with it.

This is a risky choice. There is a simple rule in finance: the term of the debt financing an asset should be close to the period over which the asset generates money. The equipment returns money gradually over several years, while a 1-year loan must be repaid in full within a year. The company has to find the difference elsewhere.

Example (prepared by the author, hypothetical figures). "Sharq tikuv" is buying a sewing line for 600 million soums. The line generates net cash inflows of 25 million soums a month, 300 million soums a year. Two options; in both, the principal is repaid in equal instalments (the differentiated method):

Yes, the amount of interest on the short loan is much smaller. But in the first year the company has to find another 365 million soums on top of the money the line generates. This money is taken from working capital: there may not be enough money for raw material purchases, salaries and taxes.

Companies often try to solve this problem with "at the end of the year we'll take a new loan and close the old one". This is refinancing risk: after a year the bank may refuse a new loan, raise the interest rate or ask for additional collateral. At that moment the company is forced to agree to expensive solutions.

When a short-term loan is appropriate:

1. For working capital: if raw materials are bought, turned into products and sold within a few months.
2. For a seasonal need: for example, to increase stocks of goods before the season.
3. To cover a short gap when revenue is definitely expected.

For an asset that will serve for several years (in this example, the sewing line), compare the loan term with the cash flow from the asset: the monthly payment should not exceed the monthly inflow.

In both, the money drawn is repaid. The difference is in the limit: whether the repaid amount can be drawn again or not.

• In a non-revolving line, the total amount drawn does not exceed the limit. If you draw 200 million and then repay 150 million, you can now draw only 100 million: the limit is not restored by the amount repaid.
• In a revolving line, the limit applies to the outstanding debt. The money you repay is added back to the limit and can be drawn again.

The exact conditions differ from bank to bank and from contract to contract, so check in the contract how the limit is restored.

Example (prepared by the author, hypothetical figures). A 300 million soum line was opened for "Gulzor ulgurji":

On a non-revolving line, in April the company will have to find 80 million soums elsewhere. On a revolving line, money can be drawn and repaid several times during the year.

Which suits when:

1. A non-revolving line — for a one-off project: for example, construction or paying for equipment in stages. The money is drawn in stages, but there is no need to draw it again.
2. A revolving line — for working capital: for trade or a seasonal business where goods are bought, sold, the money repaid and goods bought again.

Questions to look at in the contract:

1. Is there a commission on the unused limit, and how is it calculated?
2. Is a separate application and documents needed for each drawdown?
3. How is the balance repaid when the line expires?
4. In what cases can the bank reduce or suspend the limit?

The more flexible option may be more expensive, so compare the interest and commissions too.

As early as possible, before a payment is late. Once arrears begin, the late payment interest provided for in the contract may be charged and your credit history may be damaged, and negotiating with the bank becomes harder. For a client who flags the problem in advance, the bank may offer to restructure the loan, but this is the bank's decision, not its obligation.

Prepare the following for the bank:

1. The cause of the problem and how long it will last: correspondence with the customer, the customer's payment obligation.
2. A cash flow forecast for the coming months: when and how much money will come in, and how much will go out.
3. A specific proposal: which option suits the company and why.

Options that may be discussed with the bank:

• extending the loan term: the monthly payment falls, but total interest rises;
• temporarily paying only interest and deferring the principal;
• aligning the payment schedule with the revenue season;
• selling part of the collateral to reduce the debt.

Example (prepared by the author, hypothetical figures). "Ohangaron qurilish" has 240 million soums of debt left, 12 more months, 24% a year, annuity payments:

For a three-month difficulty, the last option in the table (3 months interest only) is a better fit: in the first months the payment falls to 4.8 million soums, and total interest is much lower than when the term is doubled. Extending the term suits a problem that will last a long time.

Before signing a restructuring agreement, check: do the new interest rate, any extra commission, and the collateral and guarantee conditions change? Also ask whether the option to repay the debt early is kept, in case surplus money appears once the problem is solved.

Both serve the same purpose: the customer makes sure it can cover its losses if you do not perform the contract. But the cost to the company is different.

1. Transferring the money. The money is tied up for the whole period of the security. Its cost is the income that could have been earned with this money, or the interest on a loan taken in its place. This is called opportunity cost.
2. A bank guarantee. The bank gives the customer a written undertaking: "if our client does not perform, I will pay up to the specified amount". The company pays the bank a commission. The bank may require collateral or the blocking of part of the money for this, which changes the cost.

Example (prepared by the author, hypothetical figures). "Mehnat yo'li" LLC has to provide 100 million soums of security for a 6-month contract.

Under these conditions the guarantee is 7–10 million soums cheaper. In addition, working capital is freed up and used to buy raw materials.

Cases where a guarantee may turn out expensive:

1. If the bank blocks a large part of the guarantee amount in your account: then the money is tied up anyway, and the commission is paid on top.
2. If the guarantee term is short and the commission has a minimum amount.
3. If there is no reliable collateral and the bank requires a costly collateral valuation or insurance.

One more difference: if money has been transferred, getting it back depends on the customer's action; a guarantee, however, stops being valid once the term written in it expires (read the exact condition in the text of the guarantee). If you do not perform the contract, the loss falls on you in both cases: the bank that paid under the guarantee will then claim this amount from you.

In factoring, the company hands over to the bank the money due from the customer (the receivable) and gets the money without waiting for the payment date. The cost usually has two parts: a one-off commission on the amount and interest charged on the money the bank has advanced. To compare, you need to add the two together and convert them into an annual rate.

Example (prepared by the author, hypothetical figures). "Yangiyo'l kabel" LLC shipped goods worth 200 million soums to a customer, with payment in 60 days. The factoring terms: 85% advance, a commission of 1.5% of the invoice amount, and 24% a year interest on the money advanced.

Although the stated rate is 24%, together with the commission the money costs us almost 34.7% a year. Because the commission is spread over a short period, it rises sharply in annual terms.

Questions for the decision:

1. Can this money be found more cheaply another way: a credit line, an overdraft, a discount to the customer for early payment?
2. What do we lose by waiting 60 days? If a lack of money means we cannot buy raw materials and fulfil an order, factoring may justify itself even though it is expensive.
3. Who is responsible if the customer does not pay? If the bank can demand the money back from you (recourse factoring), the risk stays with you. With non-recourse factoring the risk passes to the bank, and the bank may charge an extra fee for that risk.

Before signing the contract, ask the bank in writing for all charges (commission, interest, additional fees) in one table and do the calculation above with those figures.

Working with one bank is convenient: one client-bank program, one statement, one tariff. But then all the money moves through a single "pipe". If that bank's program fails, or operations on the account are temporarily stopped for some reason, the company cannot make payments and cannot receive incoming money. A second account is a backup route against that risk.

The decision can be made not by feel but by comparing two figures: the annual cost of the second account and the loss from one day when the main bank is not working.

Example (prepared by the author, hypothetical figures). In the "Shovot gilam" chain of shops, daily card revenue is 25 million soums, and gross profit is 20% of revenue.

If payments through the main bank could stop for more than half a day a year, the second account pays for itself. Add delayed salaries, contractual penalties for late payment to a supplier and lost customer trust, and the backup route becomes even more valuable.

An important condition: a second account does not help just because it has been opened. For the backup to really work:

1. Make sure card payments can also be accepted through the second bank, otherwise revenue will be lost anyway when the main bank stops.
2. Keep a balance on it that covers at least several days of unavoidable payments.
3. Make sure the main suppliers and employees know the second account's details too, or have a procedure ready for changing them quickly.
4. Once or twice a year make a test payment from the second account to check that access to the client-bank program and the signature keys work.

Working with two banks has an extra benefit too: it becomes easier to compare loan, tariff and currency exchange terms and ask for a better offer.

There is; it is called a deposit "ladder". The money is divided into several equal parts and placed in deposits with different terms. When each part matures, it is placed again in a long-term deposit. As a result, after a year all the money is in the highest-interest deposits, but every few months one part becomes free.

Example (prepared by the author, hypothetical rates). "Bo'ka sut" LLC divides 300 million soums into four parts of 75 million each. Hypothetical annual rates: 3 months — 14%, 6 months — 16%, 9 months — 17.5%, 12 months — 19%. A part that matures is placed again for 12 months. Interest is calculated by the simple method, in proportion to the term.

If everything is placed for 12 months at once: 300 × 19% = 57 million soums. In the first year the ladder gives about 2.9 million soums less interest. This is the price of flexibility: every 3 months 75 million soums comes into hand without an early withdrawal penalty. From the second year all parts are in 12-month deposits and the difference almost disappears.

What to watch out for:

1. Read the early withdrawal conditions in advance: if money is needed urgently, it is cheaper to withdraw the part that matures soonest.
2. Match the number of parts and the intervals to your payment calendar: if you know when large payments (taxes, rent, raw materials) are due, choose terms that fall on those dates.
3. Rates may change: the rate at the time of reinvestment will be different, so update this calculation each time.

This kind of choice is conveniently solved with a "break-even point": at how many payments a month do the two tariffs cost the same?

No-package tariff: 90,000 + 12,000 × number of payments. Package: 450,000 (up to 30).

90,000 + 12,000 × n = 450,000 → n = 30. So with fewer than 30 payments a month the no-package tariff is cheaper, with more than 30 the package is cheaper. But drawing a conclusion from one average month is a mistake, because the number of payments changes from month to month.

Example (prepared by the author, hypothetical figures). The number of payment orders of "Qamashi mebel" LLC over the last 6 months: 18, 25, 34, 41, 22, 29.

The package was cheaper in only two months, while over 6 months the no-package tariff saved 282 thousand soums. The average number of payments is 169 : 6 ≈ 28, slightly below the break-even point.

Before choosing, check:

1. Will the number of payments change in the coming months? New suppliers, moving salaries to cards or a new branch may increase the number of payments.
2. Read the full content of both tariffs: services other than payments may also be priced differently. Add every service you need to the comparison.
3. Can payments be combined: paying a supplier once a month instead of several times reduces the number of payments.

Charges for bank services are recorded in the accounts on account 9430 "Other operating expenses" (NAS No. 21, paragraph 410), so the amount saved directly reduces period expenses.

Such conditions are called covenants. Even after the loan has been granted, the bank wants to make sure the company's position does not deteriorate: covenants are the tool for that control. They fall into two types:

• financial covenants — measured with a number (the "ratio of debt to EBITDA" in your agreement is such a covenant);
• action covenants — things the company must not do without the bank's consent or must do (your dividend condition is such a covenant).

The full list of covenants that apply to you is only in the loan agreement itself.

What happens if a condition is breached — a demand for early repayment of the loan, a higher interest rate or other measures — is written precisely in the agreement itself. That is why the covenants section must be read carefully both before and after signing.

Example (prepared by the author, hypothetical figures). The total debt of "Parkent shisha" LLC is 900 million soums, and annual EBITDA is 330 million soums.

To keep the condition with the new debt, EBITDA must be at least 1,100 : 3 ≈ 366.7 million soums.

Monitoring procedure:

1. At the end of each quarter, calculate the covenant ratios exactly as the bank calculates them: what is included in "debt" (leasing, other loans), for what period EBITDA is taken — see the definition in the agreement.
2. If a ratio is approaching the limit, talk to the bank before taking new debt or making a large expenditure. Consent requested in advance is much easier than explanations after a condition has been breached.
3. Make the list of action covenants a separate reminder for the accounting department and management: the decision on dividends is taken by the founders, and they also need to know about this condition.

Shortening the term usually saves more. The reason is simple: if the monthly payment stays the same, the principal falls faster each month and the balance on which interest is charged runs out sooner. If the payment is reduced, the remaining debt is stretched over the old term and interest is charged on it for longer.

Example (prepared by the author, hypothetical figures). "Chorvoq mebel" LLC took a loan of 360 million soums for 36 months at a hypothetical 2% a month, with annuity repayments: ≈ 14,123,827 soums a month. After 12 months the outstanding balance is ≈ 267,137,012 soums. At that point the company pays an extra 100 million soums and the balance falls to ≈ 167,137,012 soums.

Calculation formula: in option A the new payment = 167,137,012 × 0.02 : (1 − 1.02^(−24)). In option B, with the old payment, the debt is closed in 13 full months plus a small payment in month 14.

Savings: ≈ 26.9 million in option A, ≈ 46.3 million soums in option B. The difference is ≈ 19.4 million soums in favour of B.

When option A is still the right choice:

• the company's monthly cash flow is tight and a smaller payment leaves a cash reserve;
• large payments (seasonal purchases, taxes) are expected in the coming months.

Practical tips:

1. Read the early repayment terms in the agreement: is there a fee, do you need to give advance notice, from what date is it calculated.
2. Get a new repayment schedule for both options from the bank in writing and compare the total interest.
3. Think before putting spare money into the loan: if it can earn more in the business than the loan interest rate, there may be no need to rush to repay the loan.

In such a loan the principal does not decrease over the whole term, so interest is charged on the full amount every month. As a result, total interest is the highest of the three options. Its advantage is that the monthly payment is the smallest and the money keeps working in the company until the end of the term.

Example (prepared by the author, hypothetical figures). Loan of 300 million soums, term 24 months, interest hypothetically 24% a year (2% a month).

The annuity payment is calculated with the formula: 300,000,000 × 0.02 : (1 − 1.02^(−24)).

So the first option is about 63.3 million more expensive than the annuity and 69 million soums more expensive than differentiated repayment. This difference is the price of holding on to the principal longer.

When this option pays off:

• what was bought with the loan brings in a large sum at the end of the term (a property that is built and sold, goods sold at the end of the season);
• you can turn over the freed-up money at a return higher than the interest rate.

The main risk is the last month. You need to find 300 million soums on a single day. If the money is not there at that moment, you will have to close the old loan with a new one, and the terms may be worse.

Practical tip: if you choose this option, open a separate savings account from the first month and set money aside for the principal every month. Then the final payment will not come as an unexpected blow.

No, it depends on how much the soum exchange rate changes. You repay a dollar loan in dollars, and if your income is in soums, your debt in soums grows when the soum falls. So the two options should be compared through the "break-even exchange rate": the rate at which the cost of the dollar loan in soums equals the cost of the soum loan.

Example (prepared by the author, hypothetical figures). Term 1 year, interest and principal repaid in one lump sum at the end of the year. Soum loan hypothetically 24% a year, dollar loan hypothetically 10% a year, today's rate hypothetically 1 dollar = 12,000 soums.

Result depending on the year-end exchange rate:

So under these terms, if the dollar rate rises by more than about 12.7% during the year (that is, the soum loses more than about 11.3% of its value), the dollar loan ends up more expensive.

Who faces less risk with a dollar loan: a company whose income is also in dollars (for example, an exporter). Its revenue rises with the exchange rate and itself offsets the growth of the debt. A company whose income is only in soums bears the currency risk entirely on its own.

One more point: a foreign currency loan is a monetary item in foreign currency (NAS No. 22, paragraph 9), and monetary items are remeasured every month at the Central Bank rate on the last date of the reporting month (paragraph 8), with the exchange difference recognised in the financial result as income or expense from financial activities (paragraph 11). So profit can jump during the year purely because of the exchange rate.

Purchases made with a corporate card are handled like accountable amounts. Under paragraph 183 of NAS No. 21, account 4230 "Advances for general business expenses" reflects advances issued for buying small tools and supplies for general business needs in cash, "as well as advances issued for purchases using corporate bank cards". Analytical accounting for these advances is kept for each advance issued (paragraph 184).

Procedure: when a card payment appears in the bank statement, the amount moves from the bank account to 4230. Then the employee submits an advance report with receipts, and what was bought is transferred to the relevant account depending on its type.

Example (prepared by the author, hypothetical figures). During the month, the office manager of "Navro'z dizayn" LLC paid by card for desk lamps of 1,800,000 soums, extension cords of 600,000 soums and taxis for taking documents to the bank of 350,000 soums (the amounts are final; VAT is not considered in the example).

Once the advance report is approved, no balance remains in 4230: 2,750,000 − 2,400,000 − 350,000 = 0.

If a payment went through by mistake and the seller refunds the money to the card, the refunded amount is credited to the bank account and 4230 is credited (paragraph 185, line 7).

Practical tips:

1. Write internal rules for the cardholder: what may be paid for, the monthly limit, the deadline for handing in receipts.
2. Every month, match the card payments in the bank statement against the receipts in the advance report one by one. A payment not backed by a receipt will remain as a balance in 4230 and will stand out immediately.

No. A grace period postpones payment but does not make the debt cheaper. Because the principal does not decrease for 6 months, interest during that period is charged on the full amount, and total interest usually rises. What happens to the interest itself during the grace period is written in the agreement: it may be paid every month or added to the debt (capitalised).

Example (prepared by the author, hypothetical figures). Loan of 240 million soums, term 36 months, interest hypothetically 24% a year (2% a month), principal repaid in equal parts (differentiated).

In option C, after 6 months the debt reaches 240,000,000 × 1.02^6 ≈ 270,278,981 soums, and interest is charged on that amount for the next 30 months. The monthly principal payment is 8,000,000 in option B and about 9,009,299 soums in option C.

Conclusion: option B is 14.4 million more expensive than A, and option C 25.3 million soums more expensive.

When a grace period is still the right choice:

• the workshop being built or the line being installed with the loan does not generate income right away;
• a cash shortfall in the first months could lead to late loan payments and penalty interest.

Practical tip: match the grace period to the project's actual start-up date. An unnecessarily long grace period increases total interest, while one that is too short makes the first payments heavy.

An annuity payment contains two different things: the interest accrued for the month and the repaid part of the principal. They are recorded in different accounts. Interest is an expense and goes to 9610 "Interest expenses" through 6920 "Accrued interest" (NAS No. 21, paragraphs 299 and 423). The principal part is not an expense; it only reduces the liability in 6810.

Example (prepared by the author, hypothetical figures). "Zarbdor non" LLC borrowed 12,000,000 soums for 12 months at 2% a month (24% a year : 12). Annuity payment: 12,000,000 × 0.02 : (1 − 1.02^−12) ≈ 1,134,715 soums.

Entries for the first month:

Note: each month the interest falls and the principal part grows, so recalculate the split every month from the balance or get the payment schedule from the bank. If you expense the whole 1,134,715 soums, over 12 months expenses will be overstated by the amount of the principal, i.e. by 12,000,000 soums, and 6810 will stay open.

No. 9610 is only for interest expenses (NAS No. 21, paragraph 423). Penya, on the other hand, is liability for breaching a contractual obligation: under paragraph 410, fines and penalty interest are recorded in 9430 "Other operating expenses". The debt for recognised penya is kept in 6960 "Claims payable" (paragraph 303).

Example (prepared by the author, hypothetical figures). "Mirishkor agro" LLC paid a monthly instalment of 30,000,000 soums 12 days late. The loan agreement sets penalty interest of 0.1 percent of the overdue amount per day (hypothetical condition). Penalty interest: 30,000,000 × 0.1% × 12 = 360,000 soums.

Why the distinction matters: in the statement of financial results, loan interest appears as an expense of financial activities, while penalty interest appears as an operating expense. If you mix them up, the true cost of the loan looks distorted.

Practical calculation: 360,000 soums relates to 12 days. If finding those 30,000,000 soums for a few days through an overdraft or another source is cheaper, that route is better than paying penya. If you can see in advance that there will not be enough money for the payment, agreeing a new date with the bank beforehand is the simplest way to avoid penya.

Money paid through the terminal does not reach the bank account immediately: for a day it is "in transit". Under paragraph 238 of NAS No. 21, cash that has left its place of storage but not yet reached its destination, including money transfers, is recorded in 5710 "Cash (transfers) in transit". The bank's fee is a payment for a banking service and is recorded in 9430 "Other operating expenses" (paragraph 410).

Example (prepared by the author, hypothetical figures). In one day the "Bodomgul" shop sold goods worth 25,000,000 soums paid by card (VAT is not shown for simplicity). Under the agreement with the bank, the fee is 1.2 percent of the takings (hypothetical condition): 25,000,000 × 1.2% = 300,000 soums. The bank account receives 24,700,000 soums.

Set in the accounting policy how to close the debt in 6990 and the 300,000-soum balance in 5710 when the fee is withheld. After that, 5710 closes to zero, and income stays at the full 25,000,000 soums. Deducting the fee from the takings and recording 24,700,000 soums in 9020 is a mistake: income is reduced and the bank expense becomes invisible.

For control: at the end of the month, the balance of 5710 should equal only the takings of the last day(s) that have not yet arrived. A larger balance means there is an amount the bank has not transferred or that was recorded incorrectly. In this example, with 25 trading days a month, the fee comes to 7,500,000 soums a month: look at this figure when comparing bank tariffs.

Yes. Loans and borrowings in foreign currency are a monetary item (NAS No. 22, paragraph 9), and monetary items are revalued every month at the Central Bank rate on the last date of the reporting month and on the transaction date (paragraph 8). The exchange difference is recognised as income or expense of financial activities (paragraph 11). Under NAS No. 21, a negative difference is recorded in 9620 "Foreign exchange losses" (paragraph 427, line 3), and a positive difference in 9540 "Foreign exchange gains" (paragraph 421, line 4).

Example (prepared by the author; the rates are hypothetical, not the actual rate). "Samarqand charm" LLC took a loan of 20,000 US dollars.

Calculation: 20,000 × (12,650 − 12,500) = 3,000,000 soums; 20,000 × (12,650 − 12,600) = 1,000,000 soums.

An important detail: if the loan dollars are still in the 5210 foreign currency account, that is also a monetary item and is revalued at the same rate. At the end of month 1, 5210 shows a positive difference of 3,000,000 soums, which offsets the 3,000,000-soum loss on the loan. Once the dollars have been converted into soums and spent, however, this "natural hedge" disappears, and a rise in the rate becomes a direct loss.

So before taking a foreign currency loan, work out how much of your income comes in that currency: if you have no export proceeds, the currency risk stays entirely with you.

The fee is added to the cost of the loan, so the real cost is higher than the quoted rate. In the accounts, however, interest and the fee are kept separately.

Example (prepared by the author, hypothetical figures). "Farg'ona plast" LLC took a loan of 100,000,000 soums for 12 months. Interest is 20% a year, paid monthly; the principal is repaid in one go at the end of the term. One-off fee: 100,000,000 × 2% = 2,000,000 soums.

(Approximate calculation: the monthly payment of interest is not taken into account.) If another bank offers 21% with no fee, that costs 21,000,000 soums, i.e. less than the offer above, even though its quoted rate is higher.

Monthly interest: 20,000,000 : 12 ≈ 1,666,667 soums. The debt to be repaid is 100,000,000 soums, so the debt in 6810 must be at that amount: besides the 98,000,000 soums received in the bank account, the 2,000,000 soums withheld is also added to the loan debt.

As to where to record the fee, the standards give grounds for two approaches:

Choose one in the accounting policy and apply it consistently to all loans. Because the fee is withheld from the loan amount rather than paid in money, also state clearly in the accounting policy how its credit side reaches 6810.

Tip: when comparing loan offers, ask the bank in writing for a list of all payments (interest, fees, compulsory services) and reduce them, as above, to a single "real cost" figure.

This is a floating (variable) rate. The loan interest consists of two parts: a changing base indicator (here, the Central Bank's policy rate) and a fixed margin added by the bank. If the base indicator changes, the loan interest rate changes by the same amount from the date stated in the agreement.

Example (prepared by the author; the policy rate values are hypothetical, not the actual rate). The loan balance of "Bekobod oyna" LLC is 240 million soums, the margin is 4 percentage points, and monthly interest is calculated as 1/12 of the annual rate.

Each 1 percentage point change on this balance changes the monthly interest by 200,000 soums and the annual interest by 2.4 million soums.

In the accounts, interest is recorded every month at the new rate with Dt 9610 "Interest expenses" – Ct 6920 "Accrued interest" (NAS No. 21, paragraph 427, line 1), and when paid, Dt 6920 – Ct 5110 (paragraph 309, line 5). Calculate the interest for the month in which the rate changed in two parts, from the day it changed.

Tip: when drawing up a cash flow plan, also calculate the scenario in which the rate rises by 1–2 percentage points — this stress test shows in advance how much reserve is needed for the monthly payment.

With a credit line, the bank reserves for you the ability to draw money at any time within the limit. That is why many agreements have two kinds of payment: interest on the amount drawn, and a fee on the limit that has not been drawn but is reserved.

Example (prepared by the author; the interest and fee rates are hypothetical). "Zomin yog'och" LLC: limit 500 million soums, drawn 200 million soums, loan interest 24% a year, fee on the unused limit 1% a year.

The real cost of the money drawn: 4,250,000 × 12 : 200,000,000 = 25.5% a year, i.e. higher than the 24% in the agreement. Had the company drawn 400 million soums, the fee would have come to 100,000,000 × 1% : 12 ≈ 83,333 soums and the real cost would have been about 24.25%. So opening a limit much larger than needed is an unnecessary expense.

In the accounts the two payments are recorded separately:

• when the loan is received, Dt 5110 – Ct 6810 (NAS No. 21, paragraph 296, line 1);
• when interest is accrued, Dt 9610 – Ct 6920 (paragraph 427, line 1);
• the fee is not interest but a charge for a bank service: payments for bank services are accounted for in 9430 "Other operating expenses" (paragraph 410), model entry Dt 9430 – Ct 6990 (paragraph 412, line 12).

Tip: when choosing a credit line, calculate the real annual cost as above, adding not only the interest but also the fee.

It does not. A pledge does not hand the property over to the bank: the warehouse remains the company's, and you continue to use it. So it stays in account 0120 "Buildings, structures and transmission equipment" as before, and depreciation continues to be charged. A pledge only gives the bank the right to satisfy its claim out of this property if the loan is not repaid.

But this right must be visible in the accounts. Off-balance sheet account 009 "Security for obligations and payments – issued" summarizes the existence and movement of guarantees issued to secure the performance of obligations and payments, and analytical accounting is kept by each security (NAS No. 21, paragraph 446). A pledge is also a way of securing an obligation, so it is logical to monitor it in this account; write this procedure into your accounting policy.

Example (prepared by the author, hypothetical figures). "Yangiyer savdo" LLC:

In off-balance sheet accounts, accounting is kept under a simple system, i.e. without double entry (NAS No. 21, paragraph 437): the amount is recorded in 009. Under paragraph 446, the amount of the security is written off as the debts are repaid, so if the loan is repaid in instalments, set in your accounting policy how the amount in 009 is reduced with each payment.

Tip: also write about pledged assets in the notes to the financial statements — a person reading the statements cannot tell from the balance sheet alone that the warehouse is pledged.

It is not a mistake. When interest is calculated day by day, the formula is: balance × annual rate × number of days : days in the year. February has fewer days, so the interest is lower too. Which formula applies (by days, or 1/12 of the annual rate each month) is written in the loan agreement.

Example (prepared by the author; the rate is hypothetical). The loan balance of "Chirchiq qadoq" LLC is 150 million soums, at 20% a year, with the year taken as 365 days:

If the interest were calculated as 1/12 each month, it would be 2,500,000 soums every month, 7,500,000 soums for the quarter.

The advantage of the daily method is felt when the balance changes in the middle of the month. For example, if 50 million soums is repaid on 15 January: 1–14 January on 150 million soums (1,150,685 soums) and 15–31 January on 100 million soums (931,507 soums), a total of 2,082,192 soums. The bank calculates by exactly these days.

In the accounts, at the end of each month the amount matching the bank's calculation is recorded with Dt 9610 – Ct 6920 (NAS No. 21, paragraph 427, line 1). At month-end, reconcile your own calculation with the bank's interest calculation: if there is a difference, the cause is often the repayment date or the number of days.

Many deposit agreements state that if the deposit is withdrawn early, the interest is recalculated at a lower rate. The company, however, had been accruing interest as income every month at the main rate in the agreement. As a result, the accounts contain interest that the bank will not pay, and it must be corrected.

Example (prepared by the author; the rates are hypothetical). "Termiz ulgurji" LLC placed 100 million soums on a deposit at 20% a year, with interest paid at the end of the term. Under the agreement, if it is withdrawn early, the interest is recalculated at 5% a year. The deposit stayed for 6 months.

Journal entries:

• interest accrued every month: Dt 4830 "Interest receivable" – Ct 9530 "Interest income" (NAS No. 21, paragraph 216, line 5, "a");
• the excess 7,500,000 soums is corrected with a red storno: Dt 4830 – Ct 9530 minus 7,500,000;
• interest paid by the bank: Dt 5110 – Ct 4830, 2,500,000 (paragraph 216, line 6).

After the correction no balance remains in 4830. The principal amount of the deposit, once withdrawn, returns from 5890 "Other current investments" to the settlement account with a reverse entry (NAS No. 21, paragraph 243).

Note: if the excess interest relates to a past year whose statements have already been submitted, the correction procedure may be different; agree it with the auditor.

Tip: if there is a chance of withdrawing a deposit early, compare the partial withdrawal conditions in the agreement in advance — being able to take only the part you need rather than the whole amount preserves the interest.

The procedure for commercial banks to accept, register and consider appeals from individuals and legal entities and to reply to them is set by Central Bank Regulation No. 3030. Under it, a bank must accept oral, written and electronic appeals, must not refuse to consider them, and must do so free of charge. It must be possible to file an appeal through the bank's official website, mobile app, branches and call centre.

Deadlines:

What the reply must look like: the bank gives a clear, reasoned answer to every issue raised, citing the legal provision where necessary. If the customer disagrees with the reply, the bank must explain the right to complain to the Central Bank or to a court. A complaint about a bank employee may not be passed to that same employee for consideration.

Inside the bank: a separate unit for handling appeals, independent of the operational business units, must be set up, an electronic control system must be kept, and systemic shortcomings found through appeals must be eliminated.

If the rules are broken (Central Bank Regulation No. 3492):

Important: these fines are not compensation paid to the customer. The Central Bank imposes them on the bank that broke the rules.

Example (compiled by the author, hypothetical situation). Javohir from Samarkand was charged twice for one purchase on his card. He wrote an appeal through the bank's mobile app and attached screenshots. A practical sequence:

1. Note the date and time you sent the appeal and take a screenshot.
2. If no registration number arrives within 3 working days, call the call centre and ask for it.
3. If there is no reply after 15 days, ask the bank whether the appeal was taken for additional study: in that case the deadline may be up to one month. If there is still no reply after a month, the procedure has been breached.
4. When the reply comes, check that each of your questions got a clear answer. If you disagree, apply to the Central Bank or a court, attaching the bank's reply and the correspondence.

Tip for a company accountant: keep a copy of every appeal about a bank error and the reply together with the bank statement. Until the money is returned, keep this amount under separate control.

The first option is called simple interest: each month interest is calculated only on the initial amount, because the interest received leaves the deposit. The second option is compound interest (capitalisation): the interest added each month itself earns interest the following month, i.e. "interest on interest" is calculated.

Example (compiled by the author, hypothetical figures). "Ko'kterak savdo" LLC placed 10,000,000 soums on deposit for 3 months; the interest under the contract is assumed to be 2% a month.

Difference: 612,080 − 600,000 = 12,080 soums. The larger the term and the amount, the faster the difference grows.

In the accounts, the interest accrued each month is recorded as income: Dt 4830 "Interest receivable" — Ct 9530 "Interest income" (NAS No. 21, paragraph 216, row 5). Under the first option, when the interest arrives in the current account: Dt 5110 — Ct 4830 (paragraph 216, row 6). Under the second option, the interest does not arrive in the current account but is added to the deposit amount, increasing its balance. Deposits themselves are kept in account 5890 "Other current investments" (paragraph 243), so in the analytical records make sure the deposit balance matches the amount in the bank statement.

Tip: before choosing, calculate both options month by month as in this table, and also think about when you will need the money — if the interest is added to the deposit, you may not be able to use it until the term ends.

Entries on 5110 "Settlement account" are made on the basis of the bank statement and the documents attached to it. So if every transaction has been recorded, the two balances should be equal. If there is a difference, compare each line of the statement one by one with the accounting entries: lines that are in the statement but not in the accounts are the cause of the difference.

Example (compiled by the author, hypothetical figures). At "Oltinsoy mebel" LLC at month-end the 5110 balance is 18,400,000 soums, while the bank statement shows 21,150,000 soums. The comparison revealed two lines:

Check: 18,400,000 + 3,000,000 − 250,000 = 21,150,000 soums. Now the balances are equal.

Both entries match the examples in NAS No. 21 (paragraph 226, rows 3 and 18). If the comparison reveals that the bank itself made an error, it is handled differently: the erroneous amount is reflected in connection with account 4860 "Claims receivable" or 6960 "Claims payable" (paragraph 225).

Tip: reconcile every week rather than waiting for month-end — checking a few lines is easy, and errors are found early.

This money is no longer in 5110, but it is not yet in the foreign currency account either. In the sample journal entries of NAS No. 21, the transfer of money to buy foreign currency is shown as Dt 5530 "Other special accounts" — Ct 5110 "Settlement account" (paragraph 226, row 5). Once the dollars arrive in the foreign currency account, they are reflected on the debit of 5210 "Foreign currency accounts in the country" (paragraph 228), which ends the intermediate state. The standard does not give a separate sample entry for this transition, so set it out in your accounting policy.

Example (compiled by the author; amounts and rates are hypothetical, not actual rates). "Navro'z plast" LLC:

The reason for the last line: money in a foreign currency account is a monetary item and, under NAS No. 22, is revalued at the end of every month. If the value increases, the difference is recorded in 9540 "Foreign exchange gains"; if it decreases, Dt 9620 "Foreign exchange losses" — Ct 5210.

Note: in the example, the soums paid and the soum value of the dollars received are assumed to be equal for simplicity. If in practice they differ, consider separately how to reflect this difference based on your accounting policy and NAS No. 22.

No. NAS No. 21 separates two accounts: 6810 "Short-term bank loans" — for short-term bank loans received by the organisation, and 6820 "Short-term borrowings" — for borrowings received from lenders other than banks for a term of no more than 12 months. A partner firm is not a bank, so your case is 6820.

The journal entries are structured just as for a bank loan, only the account is different: when the borrowing is received, Dt 5110 — Ct 6820; when it is repaid, Dt 6820 — Ct 5110. If the contract provides for interest, when it is accrued, Dt 9610 "Interest expenses" — Ct 6920 "Accrued interest"; when paid, Dt 6920 — Ct 5110.

Example (compiled by the author, hypothetical figures). "Sayhun qurilish" LLC borrowed 30,000,000 soums from its partner; under the contract, interest is 300,000 soums a month.

Balance of 6820: 30,000,000 − 12,000,000 = 18,000,000 soums.

Tip: keep the analytical records for 6820 separately for each lender and repayment date — if there are several borrowings, it is clear which one is due when.

If under the contract interest is charged on the outstanding loan balance, then as the balance decreases, the interest in the following months also decreases. Whether early repayment is permitted and whether an extra fee is charged for it is stated in the loan agreement, so check the agreement first.

Example (compiled by the author, hypothetical figures). "Bog'bon agro" LLC has a loan with an outstanding balance of 60,000,000 soums; interest is charged on the balance at 2% a month, and 6 months remain until maturity. Let us assume the company repaid 20,000,000 soums early and the bank charges no extra fee.

Monthly saving: 1,200,000 − 800,000 = 400,000 soums. Over the remaining 6 months (if the balance does not otherwise change): 400,000 × 6 = 2,400,000 soums.

Journal entries:

Tip: before repaying early, make sure that money remains for at least one or two months of essential expenses (wages, suppliers). The interest saved is cheaper than being forced to take a new loan later because of a cash gap.

No. If the money did not pass through your settlement account, there is no movement in 5110 either. The examples in paragraph 296 of NAS No. 21 show this case separately: payment of debts to suppliers from short-term loans, Dt 6010 – Ct 6810.

That is, one entry does two things: the debt to the supplier is closed, and a new debt to the bank arises. Under paragraph 292, analytical records for 6810 are kept separately for each bank, loan amount and term. When the loan is repaid: Dt 6810 – Ct 5110.

Example (prepared by the author, hypothetical figures): "Guliston un" owed its wheat supplier 80 000 000 soum. The bank transferred the loan directly to the supplier: Dt 6010 – Ct 6810 80 000 000. This amount does not appear in 5110 in the bank statement; the loan agreement and the bank's notice serve as the basis.

Interest is an expense of the period in which the money was used, so it is accrued every month without waiting for the payment date. Under paragraph 423 of NAS No. 21, interest on loans is recorded on the debit of 9610 "Interest expenses" and the credit of 6920 "Accrued interest": Dt 9610 – Ct 6920.

Under paragraph 299, the credit of 6920 records interest accrued and its debit records payment of the interest. When the bank debits the interest: Dt 6920 – Ct 5110 (examples in paragraph 226). That way each month within the quarter bears its own interest expense.

Example (prepared by the author, hypothetical figures): "Termiz qurilish" took a loan of 60 000 000 soum; the agreement sets annual interest of 24%. Monthly interest: 60 000 000 × 24% / 12 = 1 200 000 soum. At the end of January, February and March, Dt 9610 – Ct 6920 1 200 000 each. At the end of March the bank debited 3 600 000 soum: Dt 6920 – Ct 5110 3 600 000.

On the balance sheet, liabilities are split into long-term and current portions. The part of a long-term loan to be repaid within the next 12 months is transferred to 6950 "Long-term liabilities – current portion". In the examples in paragraph 336 of NAS No. 21: Dt 7810 – Ct 6950.

Payments are then settled from 6950: Dt 6950 – Ct 5110 (examples in paragraph 226). This way, anyone reading the balance sheet can see how much the company must repay within the next year, which is important in assessing liquidity.

Example (prepared by the author, hypothetical figures): "Qo'qon keramika" took a loan of 120 000 000 soum: no payments in the first year (grace period), then 40 000 000 soum repaid each year over the next three years. At the end of the first year, the next year's 40 000 000 soum is separated out: Dt 7810 – Ct 6950 40 000 000. 80 000 000 remains in 7810. The next year's payments: Dt 6950 – Ct 5110. At the end of that year, the next 40 000 000 soum is again transferred from 7810 to 6950.

This is income from financial activities. In the examples in paragraph 216 of NAS No. 21, the accrual of interest receivable from customers is recorded as Dt 4830 "Interest receivable" – Ct 9530 "Interest income". When the money arrives in the bank account: Dt 5110 – Ct 4830 (examples in the same paragraph).

Under paragraph 210, account 4830 records both the accrual and the receipt of interest. If interest is accrued within a month and received the following month, a balance remains in 4830 at month-end: this is money that is "receivable but not yet received".

Example (prepared by the author, hypothetical figures): under the agreement between "Ko'kcha print" and the bank, interest of 350 000 soum was accrued for October, and the money arrived on 3 November. At the end of October: Dt 4830 – Ct 9530 350 000. On 3 November: Dt 5110 – Ct 4830 350 000. October's income appears in October.

It sits in account 5710 "Cash (transfers) in transit". Under paragraph 238 of NAS No. 21, this account records money that has left its place of storage but has not reached its destination, including takings handed to a cash collector.

According to the examples in paragraph 239, there are two steps: when handed to the cash collector, Dt 5710 – Ct 5010; when received by the bank, Dt 5110 – Ct 5710. At month-end this money is neither in the cash desk nor in the bank, so showing it as the balance of 5710 makes the statements correct.

Example (prepared by the author, hypothetical figures): on 31 October "Oybek market" handed takings of 18 400 000 soum to the cash collector: Dt 5710 – Ct 5010. At the end of October the debit balance of 5710 is 18 400 000. The bank statement of 1 November showed the money had arrived: Dt 5110 – Ct 5710. The balance dropped to zero.

Under paragraph 410 of NAS No. 21, payments for bank and depository services are recorded as part of 9430 "Other operating expenses". They are not recorded in 9610, because 9610 is only for expenses in the form of interest.

The examples in paragraph 412 show payments for bank services as Dt 9430 – Ct 6990. When the bank debits the amount from the settlement account, this debt is closed: Dt 6990 – Ct 5110. This last entry is not given as a separate row in the standard's tables: it follows from the logic of settling a debt in 6990 "Other liabilities" with money in the bank. The bank statement and the bank's document on the service fee serve as the basis for the write-off.

Example (prepared by the author, hypothetical figures): "Sharq optika" has to pay 270 000 soum for bank services in October. At month-end: Dt 9430 – Ct 6990 270 000. When the bank debits it: Dt 6990 – Ct 5110 270 000. If there is loan interest, it is recorded separately as Dt 9610 – Ct 6920 and is not mixed in.

Yes, but not on the balance sheet. The guarantee is not the company's property; it is a contingent right: the possibility of making a claim on the guarantor if the customer does not pay. Under paragraph 445 of NAS No. 21, guarantees received as security for the performance of obligations and payments are recorded in off-balance sheet account 008 "Security for obligations and payments – received".

If no amount is stated in the guarantee, it is determined on the basis of the terms of the contract. As the customer pays off its debt, the security amount is also written off from 008 to the same extent (paragraph 445).

Example (prepared by the author, hypothetical figures): "Samarqand oyna" shipped goods worth 150 000 000 soum to a customer, with payment secured by a bank guarantee. When the guarantee is received, 150 000 000 is recorded in 008. When the customer pays 60 000 000 soum, 60 000 000 is written off from 008, leaving 90 000 000.

5110 is an asset account: it shows your own money in the bank. An overdraft is a short-term loan by which the bank allows a client to make payments in excess of the money in its settlement account. That is, the "negative" amount is in fact a debt to the bank.

NAS No. 21 does not name the overdraft separately. However, under paragraph 292, short-term loans received by an organisation are recorded in 6810 "Short-term bank loans". Since an overdraft is in substance a short-term bank loan, it is logical to keep it in 6810 as a short-term loan and to set out this procedure in the accounting policy. An amount paid to a supplier from the overdraft is then recorded like "payment of debts to suppliers from short-term loans" in the examples in paragraph 296: Dt 6010 – Ct 6810. When money comes into the account and the overdraft is closed: Dt 6810 – Ct 5110 (paragraph 226, row 22).

Example (prepared by the author, hypothetical figures): "Nukus tekstil" had 4 000 000 soum in its account, and 10 000 000 soum was paid to a supplier. Entries: Dt 6010 – Ct 5110 4 000 000; Dt 6010 – Ct 6810 6 000 000. The next day money came in from a customer and the overdraft was closed: Dt 6810 – Ct 5110 6 000 000.

With an annuity, the same amount is paid every month: at first the interest share within it is larger, and then the principal share grows. With differentiated payments, the principal is repaid in equal parts and interest is charged on the outstanding debt, so the payment decreases month by month.

With the differentiated method, total interest comes out slightly lower because the debt decreases faster, but the payments in the first months are heavier. An annuity, on the other hand, is convenient for cash flow planning. In the accounts, in both cases interest is recorded as Dt 9610 – Ct 6920 and repayment of principal as Dt 6810 – Ct 5110.

Example (prepared by the author, hypothetical figures): 12 000 000 soum, 3 months, 2% per month. Differentiated: 4 240 000, 4 160 000, 4 080 000; total 12 480 000, interest 480 000. Annuity: about 4 161 056 each month; total about 12 483 168, interest 483 168. The difference is small, but with a large amount and a long term it grows considerably.

In this case the loan goes not to the settlement account but straight to the letter of credit. The examples in paragraph 234 of NAS No. 21 contain exactly this entry: transfer of money to letters of credit from short-term loans, Dt 5510 – Ct 6810.

Then, when the letter of credit is used, the debt to the supplier is closed: Dt 6010 – Ct 5510 (paragraph 231; paragraph 234, row 7). When the unused part of a letter of credit is returned, it is restored to the account from which it came (paragraph 231); repayment of the loan is shown on the debit of 6810 (paragraph 292).

Example (prepared by the author, hypothetical figures): the bank opened a letter of credit for "Jizzax agro" from a loan of 50 000 000 soum: Dt 5510 – Ct 6810 50 000 000. The supplier shipped seed, and 50 000 000 was paid from the letter of credit: Dt 6010 – Ct 5510. Now the company's debt to the bank sits in 6810.

Under paragraph 232 of NAS No. 21, depositing money when a checkbook is issued is recorded as Dt 5520 "Checkbooks" – Ct 5110. The money still belongs to the company; it has simply been set aside in a separate "pocket".

When a payment is made by check, the amount goes out from the credit of 5520. For example, if a selling expense is paid by check: Dt 9410 – Ct 5520 (examples in paragraph 234). If the unused balance is returned at the end of the term: Dt 5110 – Ct 5520. Sub-ledger accounting is kept separately for each checkbook.

Example: "Guliston reklama" obtained a checkbook for 10 000 000 soum: Dt 5520 – Ct 5110. Advertising distribution services worth 7 200 000 soum were paid by check: Dt 9410 – Ct 5520. The remaining 2 800 000 soum was returned: Dt 5110 – Ct 5520. Now 5520 has no balance.

Under paragraph 231 of NAS No. 21, as the money in a letter of credit is used (on the basis of the bank statement), it is written off to the debit of 6010 "Payables to suppliers and contractors": Dt 6010 – Ct 5510. The unused portion is restored to the account from which it was transferred: Dt 5110 – Ct 5510.

Sub-ledger accounting is kept separately for each letter of credit, so even if there are several, the closing of each is visible separately.

Example: "Termiz shakar" had opened a 50 000 000 soum letter of credit for equipment. The supplier shipped goods worth 46 000 000 soum and the bank paid that amount: Dt 6010 – Ct 5510. The remaining 4 000 000 soum came back to the settlement account: Dt 5110 – Ct 5510. The balance on 5510 is zero.

The accounting department makes entries for the settlement account on the basis of the bank statement and the documents attached to it. Under paragraph 225 of NAS No. 21, amounts found during the check of the statement to have been posted by mistake to the debit or credit of the account are recorded against 4860 "Claims receivable" or 6960 "Claims payable".

If the bank debited too much, this is a receivable from the bank: Dt 4860 – Ct 5110. When the bank corrects the error and returns the money: Dt 5110 – Ct 4860. Conversely, if the bank credited extra money to the account by mistake, it sits on the credit of 6960 as a liability to be returned.

Example: the statement of "Nurafshon farm" showed an unknown debit of 1 500 000 soum; the company had not submitted any such payment. The accountant records Dt 4860 – Ct 5110 and writes to the bank. Once the money is returned, Dt 5110 – Ct 4860.

Foreign currency is kept not in 5110, which is in national currency, but in the 5200 accounts. If it arrived in a foreign currency account at a bank in the country: Dt 5210 "Foreign currency accounts in the country" – Ct 4010 "Receivables from buyers and customers" (NAS No. 21, examples in paragraph 229). For an account at a bank abroad, 5220 is used.

Sub-ledger accounting for foreign currency funds is kept for each foreign currency account (paragraph 228). If the exchange rate changes between the day the goods are shipped and the day the money arrives, the difference is recorded separately as an exchange difference under NAS No. 22.

Example: "Samarqand quruq meva" received 10 000 US dollars from a buyer. The amount in soum is calculated at the rate on the day the money arrives, and Dt 5210 – Ct 4010 is recorded.

Yes, both are in 5110 "Settlement account", but separately in the sub-ledger. Under paragraph 225 of NAS No. 21, sub-ledger accounting for 5100 is kept for each account opened at banks to hold funds in national currency.

The practical benefit: every month you compare the balance on each bank statement with the balance on its own sub-ledger line. With a single combined balance, an error at one bank could be "hidden" by a difference at the other. When money is transferred from one bank to the other, there is an entry between the two sub-ledger lines.

Example: at "Xorazm gilam", 5110 totals 84 mln soum. In the sub-ledger: bank 1 61 mln, bank 2 23 mln. The bank 1 statement also shows 61 mln, but the bank 2 statement shows 22.6 mln. So the 400 000 soum difference needs to be looked for only at bank 2.