If the enterprise has loan business due to business needs, the interest expense of corporate loans can be accounted by the subject of "financial expense-interest expense". How to make relevant accounting entries?

Company loan interest is recorded.

Debit: financial expenses-interest expenses

Loans: bank deposits

Financial expenses refer to the expenses incurred by enterprises to raise funds needed for production and operation. Specific items include: net interest expenditure (the difference between interest expenditure and interest income), net exchange loss (the difference between exchange loss and exchange income), handling fees of financial institutions and other expenses incurred in raising production and operation funds.

Including interest expenses (less interest income) incurred in the production and operation of enterprises, exchange gains and losses (some enterprises such as commodity circulation enterprises and insurance enterprises are accounted for separately, excluding financial expenses), handling fees of financial institutions, cash discounts incurred or received by enterprises, etc. However, the interest expenses incurred during the preparation of the enterprise shall be included in the start-up expenses; Borrowing expenses that should be capitalized for the purchase, construction or production of assets eligible for capitalization are accounted for in accounts such as "construction in progress" and "manufacturing expenses".

Accounting entries for receiving and returning loans

Debit: bank deposit

Loan: short-term loan or long-term loan

Repayment of loan:

Borrow: short-term loan or long-term loan?

Financial expenses-interest

Loans: bank deposits

Short-term loans: refers to all kinds of loans that enterprises borrow from banks or other financial institutions according to the needs of production and operation, and the repayment period is within one year, including production revolving loans and temporary loans.

Long-term loans: refers to all kinds of loans borrowed by enterprises from banks or other financial institutions with a term exceeding 1 year (excluding 1 year). There are generally two ways for enterprises to borrow long-term loans: one is to deposit the loans in the bank and withdraw them at any time under the supervision of the bank; The other is that the bank approves the loan quota and borrows as needed within the quota.