About the interest handling of the loan! 5

Let's start at the beginning.

Short-term loans refer to all kinds of loans borrowed by enterprises from banks or other financial institutions with a term of less than one year (including one year). Enterprise setup"Short-term borrowing"This account accounts for the acquisition and repayment of short-term loans. Interest on short-term borrowings shall be withheld on a monthly basis and included in financial expenses.

Long-term borrowings refer to various borrowings with a maturity of more than one year, mainly including special loans and infrastructure loans. The lender of the long-term borrowing account registers the principal amount of the borrowed long-term loan and the amount of interest incurred; The debit registers the amount of principal and interest to be repaid; The balance is on the credit side, reflecting the outstanding principal and interest of the company's long-term borrowings.

1. Treatment of interest on short-term loans.

1.If the interest on the short-term loan is paid on a regular basis (e.g., quarterly), or if the interest is paid together with the repayment of the principal at the maturity of the loan, and the amount is large, the method of withholding can be adopted and included in the profit or loss for the current period on a monthly basis. When withholding, the "Financial Expenses" account is debited and the "Withholding Expenses" account is credited;

2.If the interest on the short-term loan of the enterprise is paid on a monthly basis, or the interest is paid together with the repayment of the principal when the loan is due, and the amount is not large, it can be directly included in the profit or loss for the current period when the actual payment is made or the interest notice is received from the bank, and the "financial expense" account can be debited and the "bank deposit" or "cash" account credited;

3.If the short-term loan is a special loan borrowed by the enterprise for the purchase and construction of fixed assets, then the treatment of its interest should be treated in accordance with the treatment of borrowing costs, that is, the borrowing costs incurred before the fixed assets reach the intended state of use, which should be capitalized in accordance with the regulations, are included in the cost of fixed assets (calculated through "construction in progress") and capitalized.

2. Treatment of interest on long-term loans.

1.If it belongs to the preparation period, it shall be debited to the account of "long-term amortized expenses" and credited to the account of "long-term loans" as long-term amortized expenses, and shall be transferred to profit or loss once in the month of the commencement of production and operation;

2.If it belongs to the production and operation period, it shall be included in the financial expenses, and the "financial expenses" account shall be debited and the "long-term loan" account shall be credited;

3.Borrowing costs that belong to special borrowings related to the acquisition and construction of fixed assets shall be debited to the account of "construction in progress" and credited to the account of "long-term loans" before the fixed assets purchased and constructed reach the intended state of use. The borrowing costs incurred after the fixed assets reach the intended usable state and the borrowing costs that cannot be capitalized according to the regulations shall be debited to the "Financial Expenses" account and credited to the "Long-term Borrowings" account.

1. There are two types of accounting treatment for long-term borrowing costs:

In the occurrence is directly included in the current expenses;

Capitalized.

2. Conditions for the capitalization of borrowing costs (the following three conditions must be met at the same time before capitalization can begin):

Expenditure on assets has been incurred;

Borrowing costs have been incurred;

Acquisition and construction activities necessary to bring fixed assets to their intended state of use have begun.

Note: If there is an abnormal interruption in the acquisition and construction activities of fixed assets, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs should be suspended and recognized as current expenses until the acquisition and construction activities of assets are restarted.

3. I don't understand what you said about "the interest on long-term loans is included in long-term loans"? If it refers to the capitalization of expenses, it has already been stated above. Short-term borrowing, quarterly or semi-annual payment, or a lump sum repayment of principal and interest at maturity, and the amount is large, the interest can be withheld on a monthly basis, if the amount is not large, it can be directly included in the current expenses, no need to withhold.

4. Why capitalization.

Generally, a complete company will expense borrowing costs, borrowing costs can be deducted as expenses before income tax, less tax will of course increase profits, reduce the outflow of funds from the enterprise, and accumulate funds to create greater benefits for shareholders.

The listed company pursues the maximization of the company's interests, and for the purpose of financing, the higher the company's market value, the higher the stock price, so the capitalization of borrowing costs can increase the total asset value of the enterprise, that is, the enterprise value, which is conducive to raising the stock price; Of course, from the perspective of taxation, the cash outflow of the overpaid tax is far lower than the increase in the cash inflow of corporate financing, and of course, the capitalization of borrowing costs is beneficial to the listed company.

over

Short-term borrowings are repaid within a business cycle, generally within one year. Such interest is generally included in the finance expense.

Long-term borrowing refers to a relatively long borrowing period, generally more than one business cycle, and the interest on long-term borrowing should be confirmed and recorded in the corresponding account according to the different purposes and time relationship of the funds.

Represents personal views only. The book is good you haven't (if there is, it's that I haven't read the book).

Therefore, the idea is determined by the length of time!

If you think about it, you'll understand.

When paying the interest for the first year Borrow: Construction in progress 350,000 Credit Bank deposit 350,000 (Why don't you use bank deposit to pay interest account——— The interest on the loan is paid annually and once a year. Because during the construction period, the interest needs to be capitalized, so it does not need to be accrued at ordinary times, and it can be paid in a lump sum at the end of the year.

When paying the interest for the second year, borrow Finance Expenses 350,000 Credit Bank Deposit 350,000 (Why do you also use bank deposits without paying interest accounts?) - It is also the interest on the loan that is paid annually and once a year. However, it is advisable to accrue interest on a monthly basis to facilitate financial analysis.

This question examines the issue of interest capitalization, so the accounting of interest payable is simplified.

Merge it.

Borrow: Construction in progress 35

Credit: Interest payable 35

Debit: Interest payable 35

Credit: Bank Deposit 35

After the merger, it is:

Borrow: Construction in progress 35

Credit: Bank Deposit 35

Long-term borrowing costs should be credited to the accounts of "long-term amortized expenses", "construction in progress", "fixed assets", "financial expenses" and so on according to the purpose and period of long-term borrowing.

First, it is directly included in the current expenses when incurred;

Second, it is capitalized, and the interest on borrowings that meet the capitalization conditions is included in the cost of the relevant assets.

Specifically: first, if it occurs for the purchase and construction of fixed assets, it shall be capitalized and included in the value of the fixed assets constructed;

Second, the long-term borrowing costs incurred for the construction of fixed assets are directly included in the profit or loss for the current period after the fixed assets are delivered for use and the final accounts are handled.

Third, if it is not related to fixed assets or intangible assets, such as the financing cost of long-term borrowings raised for routine production, it will be directly included in the profit or loss for the current period as a financial expense;

Fourth, the borrowing costs incurred for investment are directly included in the current profit or loss;

Fifth, the long-term borrowing costs incurred during the preparation period (except for the borrowing costs incurred for the purchase and construction of fixed assets) shall be included in the start-up expenses;

Sixth, the long-term borrowing costs incurred during the liquidation period shall be included in the liquidation profit or loss;

Seventh, the difference in the conversion of foreign currency incurred in long-term foreign currency borrowings shall be calculated on a regular basis in accordance with the relevant methods for foreign currency business accounting, and shall be included in the profit or loss of construction in progress or the current period. The principal and interest of long-term borrowings and the difference in conversion should be included in the "long-term borrowing" account, which is different from the short-term borrowing "short-term borrowing" account, only the principal of the borrowing is calculated, and the interest is not included, and the interest of short-term borrowing is generally calculated by withholding expenses.

At the beginning, when the loan was obtained as a short-term loan, the entries were: borrow: bank deposits, credit:

Short-term borrowingShort-term borrowing becomes long-term borrowing, which is equivalent to repaying short-term borrowing and borrowing long-term borrowing from the bank

Long-term borrowing. Long-term borrowing.

Long-term borrowing refers to the borrowing of an enterprise from a bank or other financial institution with a term of more than one year (excluding one year). The long-term loans of China's joint-stock enterprises are mainly long-term loans borrowed from financial institutions, such as loans obtained from various professional banks and commercial banks; In addition to this, it also includes money borrowed from financial companies such as finance companies and investment companies.

Interest accounting for long-term borrowings:

1. There are two ways to calculate the interest on long-term loans:

1) Accrue and pay interest in installments, when accruing interest:

Borrow: Finance Expense - Interest Expense.

Credit: Interest payable.

When you pay interest in installments:

Debit: Interest payable.

Credit: Bank deposits.

When the principal is due to be paid:

Borrow: Long-term borrowing - principal.

Credit: Bank deposits.

2) When the interest is accrued under the one-time repayment of principal and interest at maturity:

Borrow: Finance Expense - Interest Expense.

Credit: Long-term borrowings – accrued interest.

When interest and principal are due to be paid:

Borrow: Long-term borrowings - principal - accrued interest.

Credit: Bank deposits.

2. In the case of installment interest, the accrued interest shall be calculated through "interest payable"; In the case of one-time repayment of principal and interest at maturity, the accrued interest is calculated through "long-term borrowing-accrued interest".

3. Calculation of interest on long-term loans: There are currently two methods for calculating interest on long-term loans: simple interest and compound interest. Simple interest is calculated only on the principal, and the interest generated is no longer added to the principal to calculate the interest repeatedly.

The calculation formula is: the sum of the principal and interest of the loan = the principal + the principal interest rate The compound interest of the period refers to the calculation of interest not only according to the principal, but also the interest payable on the unpaid interest, commonly known as "interest rollover". In Western countries, interest on long-term borrowings is generally calculated on a compound basis.

In China, the interest on long-term borrowings of domestic enterprises has always been simple interest; The interest on long-term borrowings of foreign-invested enterprises and Sino-foreign joint ventures is generally calculated on the basis of compound interest.

Short-term borrowing

All kinds of loans borrowed by enterprises from banks or other financial institutions and other foreign units for the purpose of repaying a certain debt, with a repayment period of less than one year or within a one-year business cycle.

Interest settlement method for short-term borrowings:

The interest settlement methods of short-term borrowings are divided into monthly payment, quarterly payment, semi-annual payment and one-time repayment of principal and interest at maturity.

If the interest on the short-term loan of the enterprise is paid on a monthly basis, or the interest is paid together with the repayment of the principal at the maturity of the loan, and the amount is not large, it can be directly included in the current profit or loss when the actual payment is made or the interest calculation notice is received from the bank.

If the interest on a short-term loan is paid on a regular basis (e.g., quarterly), or if the interest is paid together with the repayment of the principal at maturity and the amount is relatively large, in order to correctly calculate the profit and loss of each period, the method of withholding should be adopted, which should be withheld on a monthly basis first, included in the profit or loss of the current period, and paid at maturity.

The loan is 86,000 yuan, monthly payment, 36 installments, and the interest is yuan. Calculation: Yuan. Through the calculation of the housing loan, it is known that the hidden carrying, the annual selling interest rate is.

There are two methods, namely the accumulation method and the transaction-by-transaction method.

1.Accumulation interest method: The accumulated accumulation of the daily borrowing balance is calculated based on the actual number of days, multiplied by the daily interest rate.

The interest-bearing formula is: interest Cumulative interest-bearing accumulation Daily interest rate, where the cumulative interest-bearing accumulation is the total daily balance. The accumulation method is mainly used to calculate the interest on deposits and loans where the principal changes frequently, such as demand deposits.

The interest-based method is to use the determined principal and the agreed interest rate to calculate the interest on a case-by-case basis according to the interest-bearing formula.

2.Interest-bearing method: It is generally used to calculate the interest on deposits and loans with relatively fixed principals.

For example, fixed deposits. If the interest-bearing period is a whole year (month), the interest-bearing formula is: interest, principal, year-(month), interest rate, year-(month), number of years (months).

If the interest-bearing period has a whole year (month) and a fractional number of days, the interest-bearing formula is: interest principal annual (monthly) interest rate year (month) number of years (months) principal daily interest rate fractional days. You can also convert the interest-bearing period into the actual number of days to calculate the interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the month, and the interest calculation formula is:

Interest Principal Daily Interest Rate Actual number of days. For example: A borrows 10,000 yuan from a B with an agreed annual interest rate of 2 jiao and a term of two years, and the actual use of the money is two years and 35 days, how much is the interest?

"2 dimes per annum" means that the annual interest of one dollar is 2 dimes. Then its annual interest rate is: 1 yuan = 20%, and the daily interest rate is:

Collapse 20% 360, interest = 10000 20% 2 10000 20% 360 35 = yuan.

The calculation method of the bank's borrowing interest is as follows: principal * interest rate * term annual interest rate 12 = monthly interest rate, annual 360 = daily interest rate, monthly interest rate 30 = daily interest rate.

For example, if you borrow 10,000 yuan, the annual interest rate of 6% will be calculated for one year, one month, and 15 days

Interest for one year: 10,000 * 6% = 600 yuan;

Interest for January: 10,000 * (6% 12) = 50 yuan;

Interest for 15 days: 10,000 * (6% 360 * 15) = 25 yuan.

2. The difference between the bank and the private interest calculation: the calculation method is the same, but the interest rate is different. The bank interest rate is set and announced by the People's Bank of China, and the interest rate on private loans is generally higher than the bank interest rate, but according to state regulations, the interest rate on private loans cannot be four times higher than the interest rate of the bank of the same grade in the same period, otherwise, the excess part is not protected by law.

For example, the interest rate of a bank with a term of 6% before the judgment round, the maximum interest rate of private loans for one year cannot exceed 6% * 4 = 24%, of course, the type of Chonghe % is legal.