Accounting entries of company's loan repayment
1. When borrowing money:
Debit: bank deposit
Loans: other payables/short-term loans
2. When the interest is accumulated on schedule.
Debit: financial expenses
Loan: interest payable
3. When paying interest:
Borrow: interest payable
Loans: bank deposits
Taxes payable-personal income tax payable
4. When paying taxes:
Borrow: taxes payable-personal income tax payable
Loans: bank deposits
5. When the principal is returned
Borrowing: Other payables/short-term loans.
Loans: bank deposits
How to understand financial expenses?
Financial expenses refer to the expenses incurred by enterprises to raise funds needed for production and operation. Specifically including:
1. Interest expense refers to the net amount of short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest, long-term interest payable and other interest expenses (except capitalized interest) of imported equipment minus bank deposit interest income.
2. Exchange loss refers to the difference between the bank purchase price and the bookkeeping exchange rate caused by the settlement and purchase of foreign exchange from the bank, and the difference between the foreign currency ending balance of various foreign currency accounts converted into RMB at the end of each month (quarter and year) and the original RMB amount.
3. Relevant handling fees refer to the handling fees paid for issuing bonds (excluding those to be capitalized), bank handling fees for withdrawing bills, handling fees for adjusting foreign exchange, etc. , but does not include the handling fee paid for issuing shares.
4. Other financial expenses, such as financing lease expenses incurred in financing fixed assets.