financial expenses

Loan: bank deposit (RMB figures are calculated in foreign currency at the bookkeeping exchange rate)

Here, we need to pay attention to the "financial expense" account and the difference between debit and credit. If the debit is less than the credit, it is the exchange loss, which is expressed in blue. If the debit is greater than the credit, it is the exchange gain, which is indicated in red.

When purchasing foreign exchange, the accounting treatment is as follows:

Debit: bank deposit (RMB figures are calculated in foreign currency at the bookkeeping exchange rate)

financial expenses

Loan: Bank deposit (actual amount paid in RMB)

The "financial expenses" here, the loan balance, if the borrower is greater than the lender, is the exchange income, which is expressed in red; If the debit is less than the credit, it is the exchange loss, which is expressed in blue.

As accountants, we should not only pay attention to current accounts and statements, but also pay attention to the international economic situation, which is conducive to career development.

Here, I recommend everyone to pay attention to each issue of the live class of Dongao Finance and Taxation Live Lecture Hall. All kinds of knowledge are what financial people need most. And whoever buys the continuing education course of Dongao in 2022, the live class worth 899 yuan can be enjoyed free of charge all year round.

We should also know that the RMB exchange rate has been fluctuating recently, but generally speaking, it is beneficial to market players with foreign exchange income or foreign exchange assets. For those who have external payment needs and external liabilities, it may bring losses.