1. interest calculation method for periodic interest settlement

Interest is calculated by multiplying the accumulated interest product in the interest balance table by the daily interest rate. The formula is:

Interest = cumulative product × daily interest rate.

On the interest settlement date, the bank calculates the interest of each borrower and prepares a loan interest list in triplicate, directly from

Deduct from the borrower's deposit account. If there is payment in the borrower's account, one copy of the loan list will be used as the payment notice, and the other two copies will be used as the debit and credit summons for transfer respectively.

Debit: current deposit-×× unit depositor

Loan: interest income

2. Debt service method.

Interest is paid with the principal, which is also called transaction-by-transaction interest payment, that is, interest is returned with the principal when each loan expires. The most important thing is the calculation of time. According to the accounting system of commercial banks, the whole year is calculated as 360 days, the full moon is calculated as 30 days, and the fractional days less than the whole year or month are calculated as the actual days, that is, from year to month to day. When a bank recovers a loan, it shall, according to the interest rate, prepare a loan interest list or a special transfer loan summons to collect interest from the borrower's account.

The accounting entries at the time of recovery are as follows:

Debit: current deposit-×× unit depositor

Loan: interest income