How to account for withholding loan interest?
1. When the enterprise withholds the loan interest, the accounting entries are:
Debit: financial expenses-interest expenses
Loan: interest payable
2 enterprises to pay loan interest, accounting entries are:
Borrow: interest payable
Loans: bank deposits
3. At the end of the period, when the enterprise carries forward the interest expense, the accounting entries are:
Debit: profit this year
Loans: financial expenses-interest expenses
The difference between interest payable and financial expenses.
1, with different accounting elements, the interest payable belongs to the liability category, which increases at the lender and decreases at the borrower, and there can be a balance at the end of the period. Finance belongs to the profit and loss category, which increases in the debit and decreases in the credit, and there is no balance at the end of the period.
2. The definitions of the two are different. Interest payable belongs to loans. According to the contract, interest payable includes long-term borrowing company bonds that absorb deposits and repay the principal in installments. Financial expenses refer to the financing expenses incurred by enterprises in the process of production and operation to raise funds.
3. The contents of the two kinds of accounting are different. Interest payable accounting stipulates interest payable, including interest payable on deposits, long-term loans with interest paid by installments, corporate bonds, etc. , as well as interest expenses, exchange gains and losses, handling fees of financial institutions, cash discounts incurred or received by enterprises in the process of production and operation.