Accounting financial expenses red chong problem, how to understand financial red chong

There is interest income bank deposits must be an increase in debits, and interest income offsets financial expenses, according to the theory, it should be:

Debit: Bank Deposit 2

Credit: Finance Charge 2

Some novices will carry forward the financial expenses of the lender to the debit side, which not only does not reduce the financial expenses, but increases the expenses; So in practice, it's generally handled like this:

Debit: Finance Charge -2

Debit: Bank Deposit 2

Both of the above entries are wrong. Unbalanced borrowing and borrowing are incorrect entries and cannot be booked.

1.The basis of the accounting voucher is the original document, the document that comes to the bank, that is, the interest income received from the bank, and the entry is:

Debit: Bank Deposit 2

Borrow: Finance Expenses - Interest Income -2

2.If it is an erroneous entry before the adjustment and cannot be done with other entries, a negative number should be made according to the original entry (red letter reversal), and the accounting voucher and the reason for the reversal should be explained in the summary.

If the accounting account is incorrect, then write an entry that borrows the opposite, and flush the original one. i.e. blue punch. If the accounting account is used correctly, but the amount is overcounted, then write the same entry, write the amount with a red pen, and wash out the excess. i.e. red punch.

1. The first entry is incorrect, and the financial expense is debited to represent the expense rather than the income. The second entry is correct and should:

Borrow: Finance Expenses - Interest Income -2

Credit: Bank Deposit 2

The amount is all on the debit side, and the total is 0

Interest income is not a red rush, and a red rush generally means that you will only be red if you make a mistake.

2.If you make the first entry, you need to redflush it first, and then make the correct entry.

Red Flush Entry: Debit: Financial Expense - Interest Income -2

Credit: Bank Deposit 2

Do the correct entries again:

Borrow: Finance Expenses - Interest Income -2

Credit: Bank Deposit 2

The correct entry should look like this:

Borrow: Finance Expenses - Interest Income -2

Credit: Bank Deposit 2

This is because the expense account is generally a debit amount.

Your entries are incorrect, and they do not meet the requirements of "there must be loans, and loans must be equal".

"Red flushing" is to use red words to copy the voucher you want to flush out again.

You only need to copy the accounting entries that you made wrong last month in red again.

Expenses are generally debited, such as financial expenses, management expenses, sales expenses, etc. If it is to reduce the cost, it is generally used in red.

1. If the enterprise has sales business, when the red flush income:

Debit: Accounts receivable (in red).

Credit: main business income (in red).

Taxes payable - VAT payable (output tax) (red letter) 2. If the enterprise has purchase business, when the red flush entry:

Borrow: Raw materials (or goods in stock) (in red).

Tax Payable – VAT Payable (Input Tax Transferred Out) (in red) Credit: Accounts Payable (in red).

If the enterprise has sales business, the red flush income should be accounted for through the "accounts receivable" account, the "main business income" account, and the "tax payable - VAT payable (output tax)" account; If an enterprise has a purchase business, when the red flush entries are made, they should be accounted for in red through the "Raw Materials" account or "Inventory Goods" account, as well as the "Tax Payable - VAT Payable (Input Tax)" and "Accounts Payable" account.

The practice of the accounting entries of the red chong is as follows:

1. If the enterprise has sales business, when the red flush income:

Debit: Accounts receivable (in red).

Credit: main business income (in red).

Taxes payable - VAT payable (output tax) (red letter) 2. If the enterprise has purchase business, when the red flush entry:

Borrow: Raw materials (or goods in stock) (in red).

Tax Payable – VAT Payable (Input Tax Transferred Out) (in red) Credit: Accounts Payable (in red).

Introduction to accounting entriesAccounting entries are also known as "bookkeeping formulas". Abbreviated as "entries". According to the requirements of the double-entry bookkeeping principle, it lists the corresponding accounts of both parties and their amounts for each economic transaction.

Before registering accounts, the preparation of accounting entries through accounting vouchers can clearly reflect the classification of economic operations, which is conducive to ensuring the correctness of account records and facilitating post-event inspection.

Each accounting entry mainly consists of the accounting symbol, the relevant account name, summary and amount. There are two types of accounting entries: simple entries and compound entries. Simple entries are also called "single entries".

Refers to an accounting entry that corresponds to the debit of one account and the credit of another. Compound entries are also known as "multiple entries". It refers to an accounting entry that corresponds to the debit of one account and the credit of several accounts, or the credit of one account to the debit of several accounts.

Financial red flushing, also known as the red letter adjustment method, refers to the preparation of a set of accounting vouchers that are exactly the same as the wrong account with the red letter, and then the preparation of a correct set of accounting entries with blue letter. Correction of errors and methods by red-letter reversal method:

1. After bookkeeping according to the content recorded in the accounting voucher, if it is found that there is an error in the debitable, creditable account or accounting direction in the accounting voucher, the red letter correction method should be adopted. When making corrections, first fill in an accounting voucher that is consistent with the original content with the amount in red, register it in the account with the amount in red, and indicate in the summary column that the error in the voucher is reversed, and the original error is reversed. Then fill in a correct voucher in blue and re-register it.

2. After accounting according to the content recorded in the accounting voucher, it is found that the account in the accounting voucher is correct, and the actual amount recorded is greater than the amount that should be recorded. When making corrections, fill in the accounting vouchers with the amount of multi-mark state credit, and record the amount in red letters, and reverse the difference that is greater than the full amount of the denominated gold department to correct the wrong account.