Loans are generally divided into three detailed subjects: principal, interest adjustment and impairment. The main entries are as follows:

Borrow: borrow: loan-principal contract principal

Loan: deposit/actual payment amount of deposit in the central bank.

Borrow (or loan): loan-interest adjustment difference

Interest recognized on the balance sheet date:

Debit: interest receivable contract principal * contract interest rate

Loan: interest income amortized cost * real interest rate

Borrow (or loan): loan-interest adjustment difference

Withdraw: Borrow: the amount of deposits/deposits returned in the central bank.

Credit: the amount of interest receivable recovered from interest receivable.

Loan principal repayment of loan principal

Interest income difference

Debit (or credit): loan-interest adjusted book balance.

Impairment: Debit: Asset impairment loss loan: loan loss reserve

At the same time: debit: loan impairment transfers the book balance of loan principal and interest adjustment to impairment.

Loan: loan-principal/interest adjustment

Interest recognized on the balance sheet date:

Debit: The loan loss reserve is based on amortized cost * real interest rate (interest receivable on contract principal registered off-balance sheet * interest rate).

Loan: interest income

Recover: Borrow: Absorb the deposit/deposit the amount actually received by the central bank.

Book balance of loan loss reserve

Loan: book balance of loan impairment

Asset impairment loss difference

Irrecoverable: Borrow: loan loss reserve

Loan: the loan is damaged.

After approval, resell (write down) the off-balance-sheet "interest receivable" account.

Recovery after resale: borrowing: loan-impaired loan: loan loss reserve.

Debit: actual amount received by the central bank for deposit/deposit.

Loan: loan-the original resale balance that has been damaged.

Asset impairment loss difference