Loan refers to a form of credit activity in which banks and other financial institutions lend monetary funds at a certain interest rate and agree to repay the principal and interest when the repayment period expires. When an enterprise repays a loan, it can use the financial expense account and the bank to repay the loan. How to calculate the deposit account, how to do the related accounting processing?

Accounting entries for loan repayment

1. When repaying bank loan interest:

When accruing:

Debit: financial expenses ——Interest expense

Credit: interest payable

When paid:

Debit: interest payable

Credit: bank deposit

When repaying the bank loan principal when due:

Borrow: short-term borrowing/long-term borrowing

Credit: bank deposit

Accounting points for short-term borrowing What is recording?

1. When obtaining short-term borrowing:

Borrow: bank deposit

Loan: short-term borrowing

2. When accruing interest at the end of the period :

Borrow: Financial expenses

Loan: Interest payable

3. When repaying short-term loan interest:

Borrow: Interest payable

Loan: bank deposit

Note: The amount of interest payable is the return of the amount of interest that has been accrued

What are the accounting entries for long-term borrowings?

Debit: bank deposits

Credit: long-term borrowing

Debit: administrative expenses

Credit: interest payable/long-term borrowing - should Calculate interest

When repaying a long-term loan:

If interest is paid in installments and the principal is repaid in one go:

Borrow: Interest payable

Credit: bank deposit

Debit: long-term borrowing - principal

Credit: bank deposit

What are the financial expenses?

Financial expenses refer to the financing expenses incurred by an enterprise to raise funds required for production and operations, including interest expenses (minus interest income), exchange gains and losses, related handling fees, and cash incurred or received by the enterprise. Discounts, etc., include interest expenses (minus interest income), exchange gains and losses incurred during the production and operation period of the enterprise (some enterprises, such as commodity circulation enterprises and insurance enterprises, conduct separate accounting and are not included in financial expenses), financial institution handling fees, etc. incurred by the enterprise. cash discounts or cash discounts received, etc.