Accounting entries for payment of loan interest
1. If the capitalization conditions are not met,
1. When drawing:
Debit: financial expenses
Loan: interest payable
2. When making payment:
Borrow: interest payable
Loans: bank deposits
2. If the capitalization conditions are met.
1. Accrual time
Borrow: subjects such as projects under construction.
Loan: interest payable
2. When paying
Borrow: interest payable
Loans: bank deposits
Entries of enterprises' loans to banks
Do I need an invoice to pay the interest on the bank loan?
Do I need an invoice to pay the interest on the bank loan? We can analyze it from the following aspects:
1. According to Article 20 of the Measures for the Administration of Invoices in People's Republic of China (PRC), when units and individuals sell goods, provide services and engage in other business activities, and collect money from outside, the payee shall issue invoices to the payer; Under special circumstances, the payer will issue an invoice to the payee. In other words, the interest charged by banks for providing loan services to enterprises should be invoiced to enterprises.
2. According to Article 9 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issuing the Management Measures for Pre-tax Deduction Vouchers of Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2065438+28, 2008), if the expenses incurred by an enterprise in China belong to VAT taxable items, the other party is a VAT taxpayer who has registered tax, and its expenses are pre-tax deduction vouchers (including invoices issued by the tax bureau).
To sum up, the loan interest expense incurred by the enterprise belongs to the VAT taxable item, and the other bank also belongs to the VAT taxpayer who has gone through the tax registration, so the enterprise should ask the bank for the VAT invoice as the pre-tax deduction certificate of the loan interest expense.
To sum up, the company needs to obtain the VAT invoice issued by the bank as the pre-tax deduction certificate to pay the loan interest.
Do you still need to pay interest on bank loans every month?
Answer: When short-term interest is paid, it can be accrued or directly recorded according to the bank deduction notice.
Because bank loans need to collect interest every month, some banks collect interest monthly and some collect interest quarterly, so in general accounting treatment, in order to balance the expenses, interest needs to be accrued every month. Enter the following:
1. When drawing:
Debit: financial expenses-interest expenses
Loan: accrued expenses-interest expenses
2. When making payment:
Borrow: prepaid expenses
Loans: bank deposits