Interest settlement entry of company's foreign currency account
1. Interest settlement of enterprise's foreign currency account, accounting entries are:
Debit: bank deposit-foreign currency account
Debit: Finance Expense-Interest Income (Red)
2. At the end of the period, the profit of the enterprise this year is carried forward, and the accounting entries are:
Debit: this year's profit
Loan: Finance Expense-Interest Income (Red)
Financial expenses refer to the financing expenses incurred by an enterprise to raise the funds needed for production and operation, including interest expenses (minus interest income), exchange gains and losses and related handling fees, discount interest incurred in discounting commercial bills, cash discounts incurred or received by the enterprise, etc.
(1) Interest expense refers to the net amount of interest expense (except capitalized interest) such as short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest, long-term payable interest, etc. of imported equipment minus interest income from bank deposits.
(2) Exchange loss refers to the difference between the bank purchase price and the exchange rate used for bookkeeping due to the settlement and purchase of foreign exchange from the bank, and the difference between the ending balance of foreign currency in foreign currency accounts at the end of each month (quarter and year) and the original book amount.
(3) Relevant handling fees refer to the handling fees to be paid for issuing bonds (excluding capitalized bonds), the handling fees of issuing banks, and the handling fees for adjusting foreign exchange. , but does not include the handling fee paid for issuing shares.
The financial expenses incurred by enterprises are generally accounted for in the "financial expenses" subject, and a subsidiary ledger is set up according to the types of expenses. When the financial expenses occur, the account shall be debited, and when the ending balance is carried forward to the "profit of this year" account, it shall be credited to the account.
What does a bank deposit include?
Bank deposits are the monetary funds deposited by enterprises in banks or other financial institutions. According to business needs, enterprises open accounts in local banks, and use the opened accounts to handle deposits, withdrawals and various income and expenditure transfers.
According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank for deposit and withdrawal, transfer and settlement. Except for a small amount of cash within the prescribed limit, the monetary funds of the enterprise must be deposited in the bank.
Bank deposits of enterprises mainly include: settlement account deposits, letter of credit deposits, foreign deposits, etc. The cashier is responsible for the receipt and payment of bank deposits. Every bank deposit income and expenditure business must prepare accounting vouchers according to the audited original vouchers.
In accounting, bank deposits are assets. The last balance is on the debit side. In accounting entries, debit indicates increase. The lender indicated a decrease.