First of all, we should know that lending is only a symbol of accounting. Accounting subjects can be divided into asset subjects, liability subjects, owner's equity subjects, cost subjects and profit and loss subjects according to the different accounting elements. Under the debit and credit bookkeeping method, the structure of all accounts is debit account on the left and credit account on the right, but the nature of the accounts is different, so the contents registered by both borrowers and borrowers are different.

Asset class

Debit records of asset accounts increase and credit records decrease. If there is any balance at the end of the period, it should be debited.

debt

Debit the debt account and credit the increase. If there is a balance at the end of the period, credit it.

Owner's equity category

Debit decreases, credit increases and ending balance is credited in the owner's equity account.

Cost category

The increase in the cost account is debited and the decrease is credited. If there is a balance at the end of the period, it should be debited.

Profit and loss category

The balance of the profit and loss account should be transferred to the "profit of this year" account at the end of the period. After carrying forward, there is no balance at the end of the profit and loss account.

Second, those who lend money to banks are called borrowers or lenders.

Loans from banks by enterprises or units are called long-term loans or short-term loans (not called loans in accounting). The borrower of the loan is registered as the borrower of the bank deposit of the unit, and the lender is registered as the lender of short-term loan or long-term loan.

Debit: bank deposit

Loan: short-term loan or long-term loan

3. Is the short-term loan a borrower or a lender?

For a liability account, the credit indicates an increase and the debit indicates a decrease. For example, if you borrow money from a bank, the entries are as follows: Borrow: Bank deposit loan: When short-term loan is repaid: Borrow: Short-term loan loan: Bank deposit is like this. I wonder if I can solve your confusion.

4. Is the loan debited or credited?

Borrowing means income, and lending means paying and spending. "The lender is the source of money, and the borrower is the purpose of money. Debit refers to the increase of assets or the decrease of liabilities. Lenders refer to the decrease of assets or the increase of liabilities. Taking cash and bank deposits as the standard, loans are the outflow of funds. Such as: 1. When purchasing office supplies, capital flow lending: management expenses-office expenses? Loan: cash; 2. When selling products, capital inflow: cash/bank deposit? Loan: income from main business. Credit payment. The lender records the source of funds.