1. Interest income: generally, it is financial expenses-interest income or interest expense.

Debit: bank deposit,

Debit: financial expenses-interest income or interest expense red or credit: financial expenses-interest income or interest expense.

Some financial software will have present value, so you need to use negative debit number, otherwise you can't retrieve financial statements, so this negative debit number is also red.

2. Interest expense:

Debit: financial expenses-interest expenses,

Loan: bank deposit or interest payable,

If it meets the capitalization conditions,

Borrow: fixed assets, etc.

Loan: bank deposit or interest payable,

Financial expenses refer to the expenses incurred by enterprises to raise funds needed for production and operation. Specific items include: net interest expenditure (the difference between interest expenditure and interest income), net exchange loss (the difference between exchange loss and exchange income), handling fees of financial institutions and other expenses incurred for raising production and operation funds.

Interest refers to the use fee of money in a certain period of time, which is the reward that creditors get by lending money or monetary capital to borrowers.

The essence of interest is one of the transformation forms of surplus value and a part of profit, which mainly includes deposit interest, loan interest and interest generated by various bonds. The calculation formula is: interest = principal × interest rate × deposit period × 100%.

There are two main types of bank interest, namely, interest receivable and interest payable. Among them, interest receivable refers to the reward that the bank lends money to the borrower and is part of the bank's profit. Interest payable refers to the remuneration paid to depositors when banks absorb their deposits, which is part of the bank's cost.