What account 6990 is for
A company's debts usually sit on accounts with specific names: suppliers 6010, wages 6710, the budget 6410. But there are also debts for which no separate account has been opened: for example, fees for the services of various organisations, or an amount withheld from an employee's wages under a court document. For these, group 6900 has a "last address": 6990.
Group 6900 has eight sub-accounts (paragraph 297): 6910 to 6970 are separate accounts for lease, interest, royalties, guarantees, the current portion of long-term debt, claims and accountable persons, and 6990 is for everything else.
What the official text says
Paragraph 307 gives non-commercial operations as an example for 6990: amounts withheld from employees' wages in favour of other organisations and persons under enforcement documents or decisions of judicial bodies are kept in this account as a current liability of the organisation (to educational institutions, scientific organisations and other individuals and legal entities). Under paragraph 308, analytical accounting is kept separately for each type of liability.
Account type
In the chart of accounts, 6900 has type "P" (liability). Under paragraph 3 of NAS No. 21, on a liability account the balance and the increase in a liability are shown on the credit side and the decrease on the debit side. This means:
- when another liability arises, 6990 is credited;
- when the liability is paid or settled in another way, 6990 is debited;
- a credit balance is debt that has not yet been settled.
What is recorded on the credit
The table below lists the main rows of the Instructions' tables in which 6990 is credited. The list is not complete (for example, paragraph 309 and other paragraphs contain more rows); see the official text for the full list. Paragraphs: 60, 66, 75, 111, 114, 120, 126, 132, 135, 191, 236, 309, 394, 412.
| Transaction | Debit | Source |
|---|---|---|
| Receipt of a certificate of transfer of rights to securities (Cr 6990 and 7920) | 0610 | para. 60, row 10 |
| Purchase of equipment for installation from various persons | 0710-0720 | para. 66, row 8 |
| Various payables in the course of acquiring and constructing fixed assets | 0810-0890 | para. 75, row 20 |
| Purchase of animals from other persons and the public | 1110, 1120 | para. 111, row 1 |
| The same transaction (when account 1500 is used) | 1510 | para. 111, row 2 |
| Amount of services of various organisations in purchasing materials | 1510 | para. 114, row 6 |
| Purchase of stocks, acceptance of services from various organisations and persons | 1510 | para. 309, row 21 |
| Debts for services rendered to primary production | 2010 | para. 120, row 19 |
| Various organisations rendered services to workshops and service units | 2010, 2310, 2510, 2710 | para. 309, row 22 |
| Debt for services rendered to auxiliary production | 2310 | para. 126, row 17 |
| Debt to consumers for the cost of repairing defective products | 2610 | para. 132, row 10 |
| Debts for services rendered to service units | 2710 | para. 135, row 17 |
| Receipt of goods from other persons | 2910-2990 | para. 309, row 24 |
| VAT on acquired resources, goods, work and services (Cr 6010, 6120, 6990) | 4410 | para. 191, row 1 |
| Purchase of cash equivalents from various persons | 5610 | para. 236, row 4 |
| Receipt of transfers from other persons | 5710 | para. 309, row 27 |
| Debt to other organisations for services rendered on disposal of a fixed asset | 9210 | para. 394, row 11 |
| Transport costs of dispatching products | 9410 | para. 412, row 1 |
| Payments for bank and audit services | 9430 | para. 412, row 12 |
| Debt to the depositary for safekeeping of acquired shares | 9690 | para. 309, row 30 |
What is recorded on the debit
Rows in which 6990 decreases on the debit side (four rows):
| Transaction | Credit | Source |
|---|---|---|
| Issue of various amounts (under writs of execution and others) | 5010, 5020 | para. 223, row 17 |
| Write-off of the amount of cheques used to pay for the services of other creditors | 5520 | para. 234, row 10 |
| Settlement of the organisation's debt with securities | 5810 | para. 244, row 9 |
| Income from writing off payables and others (debit 6910-6990) | 9360 | para. 405, row 7 |
What to watch for
- "Other" is not a dumping ground. If a specific account exists for a debt (supplier 6010, wages 6710), do not record it in 6990. Account 6990 is only for liabilities that have no suitable specific account (practical advice).
- Each type separately. Under paragraph 308, analytical accounting is kept separately for each type of liability. Do not mix withheld amounts, debts for services and others into one common balance.
- Keep a document. For an amount withheld under a court document, attach a copy of the enforcement document or decision to the entry (practical advice).
- Reconcile the balance regularly. The credit balance of 6990 must match the reconciliation statement for each creditor (practical advice).
Main journal entries 24
Debit and credit are as in the model table of Appendix 2 to NAS No. 21. The transaction text briefly restates the table row.
| Transaction | Debit | Credit | Source |
|---|---|---|---|
| Certificate of transfer of rights to securities received | 0610 | 6990, 7920 | NAS No. 21, para. 60, row 10 |
| Equipment for installation purchased from various persons | 0710–0720 | 6990 | NAS No. 21, para. 66, row 8 |
| Various payables in the course of acquiring and constructing fixed assets | 0810–0890 | 6990 | NAS No. 21, para. 75, row 20 |
| Animals purchased from other persons and the public received | 1110, 1120 | 6990 | NAS No. 21, para. 111, row 1 |
| Animals purchased from other persons and the public received (when account 1500 is used) | 1510 | 6990 | NAS No. 21, para. 111, row 2 |
| Amount of services of various organisations in purchasing materials | 1510 | 6990 | NAS No. 21, para. 114, row 6 |
| Stocks purchased and services accepted from various organisations and persons | 1510 | 6990 | NAS No. 21, para. 309, row 21 |
| Debts for services rendered by primary production | 2010 | 6990 | NAS No. 21, para. 120, row 19 |
| Various organisations rendered services to workshops and service units | 2010, 2310, 2510, 2710 | 6990 | NAS No. 21, para. 309, row 22 |
| Debt arose for services rendered to auxiliary production | 2310 | 6990 | NAS No. 21, para. 126, row 17 |
| Debt to consumers for the cost of repairing defective products they received | 2610 | 6990 | NAS No. 21, para. 132, row 10 |
| Debts for services rendered to service units | 2710 | 6990 | NAS No. 21, para. 135, row 17 |
| Goods received from other persons | 2910–2990 | 6990 | NAS No. 21, para. 309, row 24 |
| VAT on acquired material resources, goods, work and services | 4410 | 6010, 6120, 6990 | NAS No. 21, para. 191, row 1 |
| Cash equivalents purchased from various persons | 5610 | 6990 | NAS No. 21, para. 236, row 4 |
| Transfers received from other persons | 5710 | 6990 | NAS No. 21, para. 309, row 27 |
| Debt arose to other organisations for services rendered on disposal of a fixed asset | 9210 | 6990 | NAS No. 21, para. 394, row 11 |
| Transport costs of dispatching products | 9410 | 6990 | NAS No. 21, para. 412, row 1 |
| Payments for bank and audit services | 9430 | 6990 | NAS No. 21, para. 412, row 12 |
| Debt to the depositary for safekeeping of acquired shares accrued | 9690 | 6990 | NAS No. 21, para. 309, row 30 |
| Various amounts issued (under writs of execution and others) | 6990 | 5010, 5020 | NAS No. 21, para. 223, row 17 |
| Amount of cheques used to pay for the services of other creditors written off | 6990 | 5520 | NAS No. 21, para. 234, row 10 |
| The organisation's debt settled with securities | 6990 | 5810 | NAS No. 21, para. 244, row 9 |
| Income from writing off payables and others | 6910–6990 | 9360 | NAS No. 21, para. 405, row 7 |
Example
Zomin Tuz LLC (a fictitious producer of packaged salt) made the following entries on other liabilities during a month. The amounts are taken for illustration only.
| No. | Transaction | Dr | Cr | Amount, soums |
|---|---|---|---|---|
| 1 | Services of various organisations accrued in purchasing materials | 1510 | 6990 | 2,400,000 |
| 2 | Transport costs of dispatching products accrued | 9410 | 6990 | 1,800,000 |
| 3 | Payments for bank and audit services accrued | 9430 | 6990 | 900,000 |
| 4 | Various amounts issued from the cash desk (debt on 6990 decreased) | 6990 | 5010 | 1,500,000 |
Source of the entries: 1 is para. 114, row 6; 2 is para. 412, row 1; 3 is para. 412, row 12; 4 is para. 223, row 17.
Calculation for 6990:
| Indicator | Amount, soums |
|---|---|
| Balance at the start of the month | 0 |
| Credit turnover (1, 2, 3) | 2,400,000 + 1,800,000 + 900,000 = 5,100,000 |
| Debit turnover (4) | 1,500,000 |
| Credit balance at the end of the month | 3,600,000 |
Check: 5,100,000 − 1,500,000 = 3,600,000 soums of other liabilities not yet settled. Under paragraph 308, this balance must equal the total of the analytical cards kept separately by type of liability (example prepared by the author).