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Accrued interest on bank deposits and short-term loans
This paper will introduce the interest accrual methods of bank deposits and short-term loans to help readers better understand the accrual process.

Lending relationship

There is a difference between bank deposits and short-term loans. Bank deposits are debits, and short-term loans are credits with equal amounts.

accrued interest

Interest is calculated at 6% of the loan amount every month, and accrued to the financial expense-interest expense account, and the accrued expense-interest account is increased accordingly.

accrued expenses

//The interest account is used to record the interest expenses that have occurred in the current period but have not been paid. It has been cancelled in the new accounting standards, so it is ok to use the interest payable account instead.

bookkeeping methods

At the end of each month, keep accounts according to the loan relationship and interest-bearing rules until the short-term loan is paid off.