How do I make entries and carry forward of the interest received?

When you receive bank interest, you make the correct entries.

The entries at the time of carry-over are as follows:

Borrow: Profit for the current year.

Credit: Finance Expense.

Debit: Profit distribution - undistributed profit.

Credit: Profit for the year.

In the case of computer bookkeeping, it is generally possible to set up automatic carry-forward entries for income statement items, so that there is no need to manually carry out month-end carry-forwards.

1) Receive interest on bank deposits.

Borrow: Bank deposit.

Credit: Finance Expense.

2) At the end of the year, the balance is carried forward.

a) The finance charge is the debit balance.

Borrow: Profit for the current year.

Credit: Finance Expense.

b) Finance charges are credit balances.

Borrow: Finance Expenses.

Credit: Profit for the year.

There is no balance at the end of the year in the financial expense account.

When an enterprise receives interest income and exchange income, it debits the accounts of "bank deposits" and "long-term loans", and credits the accounts of "financial expenses". At the end of the period, the balance of the "Financial Expenses" account should be transferred to the "Profit of the Year" account, the "Profit of the Year" account should be debited, and the "Financial Expenses" account should be credited (if the "Financial Expenses" account is a credit balance, the opposite accounting entry should be made).

Interest received. Borrowing: Bank Deposits Credit: Financial Expenses - Interest Income.

At the end of the month; If the interest expense is greater than the interest income, it will be carried forward and borrowed according to the net income and expenditure; Profit for the year. Borrow; Finance Charges - Net Expenditures.

In the case of computer bookkeeping, financial expenses must be debited, even in red. The subsequent carry-forward must be credited, even in red.

When receiving bank interest.

Borrow: Bank deposit.

Credit: Finance Expense.

At the end of the month;

Borrow: Finance Expenses.

Credit: Profit for the year.

Don't use red letters.

The financial software only takes the debit amount of the amount of expenses incurred in the current period, so when receiving interest on the deposit, it can only"Borrow: Finance Charges (in red)."

DR: Bank Deposit.

CR: Finance Expense.

tl;dr: Finance Charges.

CR: Profit for the year.

This is according to the dr: bank deposit you originally gave.

CR: Finance Expense.

In other words, the financial cost is on the CR side, and the opposite is true if it is on the DR side.

There is no balance at the end of the period fee.

Borrow: Bank deposit.

Credit Dividends receivable (interest).

Borrowing dividends (interest) receivable

Credit Non-operating income.

I'm just a sophomore in college, and I've only studied basic accounting, so I'm smiling. And what are you doing with red letters.

There are two scenarios:

1. If the loan interest is collected, it should be included in the interest income account, and the business tax, urban construction tax, education surcharge, etc. should be calculated and paid.

2. If it is the deposit interest of the unit's own funds, it should be included in the financial expense account, that is:

Borrow: Bank deposit.

Credit: Finance Expense.

3. There is no financial expense account that can be added to set up this account: the interest received from bank deposits, that is, the increase in bank deposits, the bank deposits are asset accounts, the increase in assets is debit, and interest expenses and bank charges are financial expenses. Interest received on bank deposits is a write-off of finance charges, a decrease in expenses, and a reduction in expenses is a credit.

Specific contents: 1) Interest expense refers to the net amount of interest expenses (excluding capitalized interest) such as interest on short-term borrowings, interest on long-term borrowings, interest on bills payable, interest on bills discounted, interest payable on bonds, interest payable on long-term foreign equipment funds payable, etc., minus interest income from bank deposits.

2) Exchange loss refers to the difference between the bank**, the selling price and the exchange rate used in the bookkeeping due to the sale or purchase of foreign exchange from the bank, and the difference between the amount of the bookkeeping RMB and the original book RMB amount converted by the closing balance of various foreign currency accounts at the end of the month (quarter, year) according to the exchange rate prescribed at the end of the period.

3) The relevant handling fee refers to the handling fee paid for the issuance of bonds (except for the handling fee to be capitalized), the bank fee for issuing bills of exchange, the handling fee for adjusting foreign exchange, etc., but excluding the handling fee paid for the issuance of **.

4) Other financial expenses, such as financial lease expenses incurred in financial leasing of fixed assets.

Expenses are debited when they occur!

Debit: Bank Deposit - x account.

Finance Charges - Interest.

When carrying over:

Borrow: Profit for the current year.

Credit: Finance Expense.

1. If it is a manual account, both entries can be:

Borrow: Bank deposit.

Credit: Finance Expenses - Interest Income.

Or borrow: bank deposit (in red).

Borrow: Finance Expenses - Interest Income (in red).

2. If the financial software does the accounting, the accounting entries must be:

Debit: Bank deposit (in red).

Borrow: Finance Expenses - Interest Income (in red).

3. Month-end loan: the profit of the year.

Credit: Finance Expense.

Bank deposits are debited to credit finance expenses and carried forward to the current year's profits.

When interest is charged on bank receipts.

Borrow: Bank deposit.

Borrow: Finance Charges (in red).

Month-end carry-forward debit: the current year's profit in red.

Credit: Financial Expenses in red.

If interest is charged.

Borrow: Bank deposit.

Credit: Finance Expense.

Then when carrying over:

Credit: Profit for the year.

Credit: Financial Expenses in red.

Interest income first, such as 200 borrowing bank deposits 200 loans financial expenses - interest income 200 (the detailed account is with you, I temporarily use the interest income) carryover, if there are no other financial expenses this month borrow: financial expenses - interest income 200

Credit: Profit for the year 200

Hope it helps!!

Interest received.

Borrow: Finance Charges - Interest (in red).

Credit: Bank deposits (in red).

Balance**Borrow: Profit for the year (in red).

Credit: Financial Expenses in red.

Borrow: Operating Income Credit: Profit for the Year Borrow: Profit for the Year Loan: Operating Expenses.

1. Manual entries, debit: bank deposits, credit: financial expenses - interest.

2. Financial software entries, borrow: bank deposits (blue letters), borrow: financial and stupid business expenses - interest (red letters).

3. The financial software keeps accounts, and at the end of the month, the profit and loss must be transferred to the profit account of the current year.

4. The interest expenses and handling fees in the financial expenses are paid on the debit side, and the interest income is made in red in order to facilitate the carryover.

5. If the interest income is made into the accounting entry of the credit, it will lead to the failure of the credit of the financial expense at the end of the month, and the value of the balance sheet and the income statement will not match this.

It is divided into two situations to discuss: slippery 1, if it is a manual account, borrow: bank deposit.

Credit: Finance Expenses - Interest Income.

Borrow: Bank deposit.

Borrow: Finance Expenses - Interest Income (in red).

2. If it is a financial software, it is a letter to do the accounting.

Borrow: Bank deposit.

Borrow: Finance Expenses - Interest Income (in red).

However, whether it is manual bookkeeping or financial software, when carrying forward the financial expenses incurred in the current period at the end of the period, only the debit side of the financial expenses is generally summed up, and the total is carried forward to the profit of the current year.

Accounting entries carried forward at the end of the period: debit: profit for the current year.

<> Loans: Finance Expenses (including Interest Expenses; interest income [debit red letter financial expenses); Bank charges, etc.

Period-end carry-forward accounting entries:

Borrow: Profit for the current year.

<> Loans: Finance Expenses (including Interest Expenses; interest income [debit red letter financial expenses); Bank charges, etc., if the first method is used to calculate the financial expenses (debits) incurred in the current period at the end of the period, it is easy to cause errors.

In this case, attention should be paid to the financial expenses (debit) incurred in the current period minus the financial expenses (credit) incurred in the current period as the financial expenses (debit) when carrying forward at the end of the period

Period-end carry-forward accounting entries:

Borrow: Profit credit for the current year: financial expenses "Here attention should be paid to the financial expenses incurred in the current period (financial expenses (debit) minus the financial expenses (credits) incurred in the current period

Generally speaking, interest income is the interest income obtained by the enterprise from providing funds to others for use or others occupying the funds of the enterprise.

Accounting entries for interest income carried forward.

1. When received.

Borrow: Bank deposit.

Credit: Finance expense – Interest income (or negative debit).

2. When carrying forward at the end of the month.

Borrow: Finance Expenses - Interest Income.

Credit: Profit for the year.

Accounting entries for interest expense.

1. When accruing interest.

Borrow: Finance Expenses.

Credit: Interest payable.

2. When the actual payment is made.

Debit: Interest payable.

Credit: Bank deposits.

3. When direct payment is not accrued.

Borrow: Finance Expenses.

Credit: Bank deposits.

What are the finance charges?

Financial expenses refer to the financing expenses incurred by the enterprise in order to raise the funds required for production and operation, including interest expenses (interest reduction and land interest income), exchange gains and losses, related handling fees, cash discounts incurred or received by the enterprise, etc. It includes interest expenses (minus interest income), foreign exchange gains and losses incurred during the production and operation of enterprises (some enterprises such as commodity circulation enterprises and insurance companies are separately accounted for and are not included in financial expenses), handling fees of financial institutions, cash discounts incurred or received by enterprises, etc. However, the interest expenses incurred during the preparation period of the enterprise should be included in the start-up expenses; The borrowing costs that should be capitalized for the acquisition, construction or production of assets that meet the conditions for capitalization shall be accounted for in the accounts of "construction in progress" and "manufacturing expenses".

The accounting entries for the financial expenses are as follows:

1. When it happens.

Borrow: Finance Expenses.

Credit: Interest payable on bank deposits (payment of interest on short-term loans, bank charges, etc.) (fictitious accrual of interest on short-term or long-term loans).

2. The profit of the year is carried forward to the end of the period.

Borrow: Profit for the current year.

Credit: Finance Expense.