What is withholding interest and what does accrual mean?

For example, if you borrow 100,000 yuan from the bank to pay 1,000 yuan of interest per month, the bank will charge interest once every three months, and you have to make the 1,000 yuan of the current month into the cost, and the bank 1,000 yuan in the current month has not been collected, so the current month and has not paid the 1,000 yuan of interest The accounting method is called withholding, and the specific entry is borrowing: financial expenses of 1,000 yuan Loan: withholding expenses - interest payable 1,000 yuan short-term loan (short term loan, short term loans) is a type of borrowing, as opposed to long-term borrowing.

In China's accounting practice, short-term borrowings refer to all kinds of borrowings borrowed from banks or other financial institutions and other foreign entities with a repayment period of less than one year (including one year) for the funds required by an enterprise to maintain normal production and operation or to settle a certain debt. Short-term borrowings mainly include operating turnover loans, temporary borrowings, settlement borrowings, bill discount borrowings, seller's credit, pre-purchase deposit borrowings and special reserve borrowings. Short-term borrowings account for all kinds of borrowings borrowed by enterprises from banks or other financial institutions with a term of less than one year (including one year).

For example, if you have a loan and pay interest quarterly, you don't have to pay interest for the first 2 months of each quarter, but only on the third month, which is the end of the quarter. However, these interests occur every month, so in order to accurately calculate the monthly profits, you are required to accrue interest according to the accrual basis, and the entries are generally borrowed: financial expenses - interest.

Credit: Interest Payable - xx bank.

That's it.

Let's accrue interest.

Accounting on an accrual basis occurs even if no payment is made.

According to the accrual basis of the accounting system for business enterprises, the enterprise needs to accrue the interest that should be paid in the current period but has not yet been paid in the current period at the end of the current period.

If the borrowing is for the purchase of fixed assets, the above-mentioned "financial expenses" are changed to "construction in progress" (installation required) or "fixed assets" (installation required). However, the interest incurred after the use of fixed assets is still included in the "financial expenses". Its cost should reflect the "principle of proportionality".

Interest accrual (interest accrual) is based on the fact that after the two parties reach an agreement in a foreign currency-to-RMB transaction, the principal of both parties is not cleared in a certain type of transaction, but only for interest.

For example, in the simulated transaction, the maturity time of foreign currency and RMB is delayed by 3 days or more than 3 days, and the interest is customized in three days during these three days, and the interest on the day of settlement is calculated once a day until the last day of settlement, which is called interest accrual.

Withholding interest refers to the interest on working capital bank loans that should be borne by the enterprise in the current period but have not yet been paid and deposited in advance.

The enterprise's withholding interest should be accounted for through the "Withholding Expenses" account, when withholding interest, the "Financial Expenses - Interest Expenses" account is debited and the "Withholding Expenses" account is credited, and when the interest is paid, the "Withholding Expenses" account is debited and the "Bank Deposits" account is credited. Withholding interest refers to the interest on bank loans that should be borne by the enterprise in the current period according to the regulations, and the interest on bank loans that have not yet been paid and should be included in the cost in advance. Provision generally refers to expenses.

This is generally for situations that have already occurred but have not yet received an invoice. For example, you may want to sell an item, but you have not yet received an invoice. In this case, it is necessary to tentatively estimate the warehousing of the goods.

If you have a large amount of electricity bills incurred in this month, you need to accrue them before you receive the invoice at the end of the month.

Accrual of interest refers to the interest that should be paid in the current period but has not yet been paid at the end of the current period according to the loan agreement. There is little difference between the two, both of which are the links of accruing costs and expenses, which are the embodiment of the accounting periodization and accrual system of enterprises, and also reflect the principle of proportionality of expenses, which does not involve the payment of funds. Interest payable when paying interest:

Borrow: Interest Payable: Bank DepositsNote:

When the actual interest is accrued, it is necessary to pay attention to whether the interest is paid in installments or a lump sum repayment of principal and interest at maturity. In practice, the accrual of interest on loans is generally calculated on the basis of 360 days, according to the actual loan principal and the agreed period of the contract, and the interest is calculated periodically according to the contract interest-bearing interest rate agreed in the loan agreement. The basic requirement for the accounting of withholding expenses is to correctly calculate the outstanding expenses payable in the current period on the accrual basis and to correctly reflect the accrual and actual payment of these accrued expenses in each period.

In order to account for and supervise the accrual and payment of withholding expenses, an enterprise should set up a "withholding expenses" account, which belongs to the liability category, and its credit registers the various expenses withheld by the enterprise; the actual amount of expenditure incurred by the debit side to register the withholding expense; The closing balance is generally on the credit side and represents expenses that have been provisioned but have not yet been actually spent.

For example, if you borrow 100,000 yuan from the bank and pay 1,000 yuan per month, the bank will charge interest once every three months, and you have to make the 1,000 yuan of the month into the cost, and the bank will not collect 1,000 yuan in the month.

Then the accounting method of 1,000 yuan of interest that has not been paid in the current month is called withholding, and the specific entries are:

Borrow: financial expenses of 1000 yuan.

Credit: Withholding expenses - interest payable 1,000 yuan.

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Withholding expenses: Expenses that are included in the costs and expenses of each period in advance but are actually paid later.

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Withholding expenses generally exist on an accrual basis, for example, some expenses should be counted in the current month, but the money may not be paid in the same month, in order to accurately reflect the current profit and loss, the expenses belonging to the current period will be accrued through the withholding expenses, and the actual payment is to offset the withholding expenses.

Withholding expenses: refers to the expenses that the enterprise has withdrawn in advance according to the regulations but has not yet actually paid. That is, what the enterprise has not yet paid, but should pay, should be recorded as a liability.

Withholding expenses refer to the expenses that an enterprise has paid in advance from its costs but have not yet actually paid, such as interest expenses on bank loans, prepaid fixed asset repair costs, rents, and insurance premiums.

Withholding expenses are characterized by benefiting, withholding first, and paying later. Installment payments for similar premises.

The credit side of the account records the increase in liabilities and the debit side records the decrease, and the balance generally appears on the credit side, reflecting the actual amount of the debt incurred by the enterprise at a point in time at the end of the period.

Assets and liabilities that do not meet the definition of assets and their recognition conditions cannot be reflected in the balance sheet. "Expenses to be amortized" and "expenses to be provided" do not meet the definition of assets and liabilities, so "expenses to be amortized" and "expenses to be provided" cannot be reflected in the balance sheet. The above two accounts are essentially settlement accounts, and the new accounting standards in 2007 have eliminated the use of "expenses to be amortized" and "expenses to be withheld".

Accruing interest on a monthly basis means that a certain amount of interest is paid every month according to the agreement.

1. Withholding loan interest (as long as the withholding interest is mentioned, it means that the interest has definitely not been paid) borrowing: financial expenses.

Credit: Interest payable.

2. Interest paid on borrowings (interest paid, then bank deposits decrease, on the credit side) 1. If the interest paid is for the previous month, then the interest payable decreases, the interest payable is a liability, and the decrease in negative and high debt is on the borrower side.

Borrow: Interest payable or long-term borrowing (interest from previous months).

Credit: Bank deposits.

2. The interest paid in the current month will be directly included in the financial expenses according to the accrual basis.

Borrow: Finance Expenses.

Credit: Bank deposits.

If an enterprise borrows (short-term and long-term), it needs to pay interest in installments or in a lump sum according to the loan agreement. If the principal and interest are repaid in a lump sum at maturity or the interest is paid in installments, according to the accrual basis of the accounting system of Zhengkuan enterprises, the enterprise needs to accrue the interest that should be paid in the current period but has not yet been paid in the current period at the end of the current period.

Interest accrual refers to the interest paid on a quarterly basis, which is accrued and charged to the withholding expense every month.

It refers to the interest that needs to be paid in the future, which is included in the financial expenses in advance.

It is to calculate the current interest, which is not paid in the current period, and some of the principal and interest are repaid as soon as they are returned.

That is, if there is a loan, it will be withdrawn first when the bank has not yet issued an interest note, and when the payment is made, it will be carried forward.