Accounting treatment of public loan interest
Accounting treatment is as follows:
Get a loan,
Debit: bank deposit
Loans: short-term loans (long-term loans)
Accumulated interest
Debit: financial expenses-interest
Loan: interest payable
Interest payment
Borrow: interest payable
Loans: bank deposits
Repay the loan when it is due,
Borrow: short-term loan (long-term loan)
Loans: bank deposits
Accounting entries about bank interest
There are two main accounting entries for bank interest income: manual accounting entries and financial software accounting entries. Although the results of the two methods are the same, there is a big difference if the financial software keeps accounts.
I. Entries of interest income in manual account:
Debit: bank deposit
Loans: financial expenses-interest
Two, the financial software bookkeeping interest income entries:
Debit: Bank deposit (blue)
Debit: Finance Expense-Interest (red)
Third, why is there such a difference?
For bookkeeping with financial software, at the end of each month, the profit and loss subjects should be transferred to the "profit of this year" subject, in which the handling fee payment and interest expenses of financial expenses are debited, and the interest income is made red for convenience of carry-over.
If the interest income is used as the accounting entry of the lender, it will lead to the situation that the lender can't carry forward the month-end financial expenses, and it will also lead to the data mismatch between the balance sheet and the income statement, but this is a problem with the setting of the financial software.
Entries during month-end carry-over:
Debit: this year's profit
Loans: financial expenses
This is the end of the sharing of accounting entries for corporate loan interest. I hope I can help you solve your doubts and learn more accounting knowledge. Please continue to pay attention to the deep space network.