Accounting entry of bank interest settlement
Debit: bank deposit
Loans: financial expenses
What is a bank deposit?
Bank deposit is the money deposited in the bank and an integral part of monetary funds.
Bank deposit is an asset-based account, with the debit indicating increase, the credit indicating decrease, and the ending balance in the debit.
Bank deposit accounts are divided into basic deposit account, general deposit accounts, temporary deposit accounts and special deposit accounts. Basic deposit account refers to the account where an enterprise handles daily transfer settlement and cash receipt and payment. A general deposit account refers to an account for transferring bank loans from enterprises outside basic deposit account. Temporary deposit account refers to an account opened by an enterprise for temporary production and business activities. A special deposit account refers to an account opened by an enterprise for a specific purpose.
How to understand financial expenses?
Financial expenses refer to the expenses incurred by an enterprise to raise funds needed for production and operation, including but not limited to interest expenses (excluding interest income) incurred during the production and operation of the enterprise, fees of financial institutions, exchange gains and losses (some enterprises, such as commodity circulation enterprises and insurance enterprises, are accounted for separately and are not included in financial expenses), and cash discounts incurred or received by the enterprise.
It should be noted that the interest expenses incurred by the enterprise during the preparation period should be included in the organization expenses; Borrowing expenses that should be capitalized for the purchase, construction or production of assets eligible for capitalization are accounted for in accounts such as "construction in progress" and "manufacturing expenses".
The "financial expense" account belongs to the profit and loss account. At the end of the period, the balance of undergraduate program should be transferred to the subject of "profit this year".
In the income statement, the single item "financial expenses" reflects the financial expenses incurred by the enterprise and is filled in according to the amount of the "financial expenses" subject, that is, the balance carried forward at the end of the period.