How to make accounting entries entrusted by national debt?
The handling fees incurred in the process of bond issuance are included in the "bond cost payable", and the specific accounting entries are as follows:
Debit: bank deposit
Bonds payable-interest adjustment
Loans: bonds payable-face value
What is the subject of bonds payable?
Bonds payable are liabilities. This course accounts for the principal and interest of bonds issued by enterprises to raise funds. It also includes convertible corporate bonds issued by enterprises, liabilities and equity, and liabilities formed after splitting.
What is the national debt?
National debt is a bond issued by the state, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors, which promises to repay the principal and interest within a certain period of time. Because the issuer of national debt is the country, it has the highest credit and is recognized as the safest investment tool.
According to the different ways of borrowing debts, national debt can be divided into national bonds and national loans.
National debt is the legal relationship of national debt formed by issuing bonds. National debt is the main form of domestic debt. The national debt issued by China mainly includes national debt, national economic construction bonds and national key construction bonds.
The national loan is an agreement or contract signed by the borrower and the borrower according to certain procedures and forms, forming a legal relationship of national debt. National borrowing is the main form of national foreign debt, including loans from foreign governments, loans from international financial organizations and loans from international commercial organizations.