Interest settlement refers to the actual payment of interest, and the bank settles the deposit and loan interest at the agreed interest rate according to the amount of bank deposits and loans of the enterprise. When an enterprise carries out interest settlement, it shall conduct accounting through the subject of "financial expenses". When an enterprise receives bank interest, it generally debits "bank deposits" and credits "financial expenses". However, since the financial expense items in the income statement always take the debit amount, the interest-bearing income should be debited in red.
If the interest income generated by the enterprise is carried forward, it shall be accounted for by the subjects of "bank deposit" and "financial expenses". Because the financial expenses in the income statement of enterprise accounting system always take the debit amount, the increase of interest income of financial expenses is generally treated as a red-ink debit.
Understanding of financial expenses:
1. Interest expense refers to the net amount of short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest, long-term interest payable and other interest expenses (except capitalized interest) of imported equipment minus bank deposit interest income.
2. Exchange loss refers to the difference between the bank purchase price and the bookkeeping exchange rate due to the settlement or purchase of foreign exchange from the bank, and the difference between the foreign currency ending balance converted into RMB and the original RMB at the end of each month, quarter or year.
3. Relevant handling fees refer to the handling fees paid for issuing bonds (excluding those to be capitalized), bank handling fees for withdrawing bills, handling fees for adjusting foreign exchange, etc. , but does not include the handling fee paid for issuing shares.