A monthly adjustment to the current portion of long term debt is necessary when:

1. the company issues monthly balance sheets, and

2. the amount to be paid on a loan’s principal balance during the next 12 months is different from the amount presently shown as a current liability.

The amount reported as a current liability plus the amount reported as a long term liability must be equal to the total amount owed on the debt.

Download our Current Portion of Long-Term Debt Form and Template.

Learn more about the Balance Sheet.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

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