Bank loans are an important financing method. The loan principal refers to the actual amount of the bank loan. According to accounting standards, the bank loan principal is a liability account. In bank loan accounting, banks need to record liabilities and assets at the same time. The liability side is the principal of the bank loan, and the asset side is the loan interest income. The specific operations of these two aspects will be slightly different depending on the actual situation.

How should the bank loan principal be calculated? Banks need to follow accounting standards when calculating loan principal. Specifically, the loan principal should be viewed as the bank's liability rather than its asset. After lending money to a borrower, the bank should record its principal through secondary accounting. Because the loan principal is a liability of the bank, it is placed on the liability side of the balance sheet. The repayment of principal and interest on bank loans also needs to be accounted for and tracked through accounting standards.

Bank loan principal is an important liability of the bank. Each bank lists the loan principal on its balance sheet. The bank obtains income from loans, and loan interest income becomes its important asset. Bank loans can help people realize their dreams of buying houses, cars, starting businesses, and opening stores, but they also increase bank risks. Therefore, when issuing loans, banks need to strictly assess the borrower's credit rating and repayment ability to reduce risks.