Current Portion of Long-Term Debt CPLTD

Definition: LTD principal due within 12 months

Scope:ModerateDifficulty:Moderate

LTD principal due within 12 months

Common Journal Entries
AccountDebitCredit
1. Reclassify to current
$12,000 of long-term note due within 12 months.
Notes Payable (Long-Term)Liability−$12,000
Current Portion of Long-Term DebtLiability+$12,000
Year-end reclassification for balance sheet presentation.

T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.

Notes Payable (Long-Term)Long-term liability — written obligation due beyond 12 months. Credits increase the balance; debits decrease it as principal is repaid.LiabilityAn obligation the business owes to others. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$12,000.00
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
Normal bal. ▶
$12,000.00
Current Portion of Long-Term DebtCurrent Portion of Long-Term DebtLiabilityAn obligation the business owes to others. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$12,000.00
Normal bal. ▶
$12,000.00
DurationShort-Term

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