What does it mean to withhold the interest on bank borrowings that should be borne this month?

Interest on bank borrowings is an expense that should be borne in the current period but paid in the later period. Interest on bank borrowings is generally settled on a quarterly basis. In order to correctly account for expenses and financial results, enterprises or individuals should withhold the interest payable in the first two months of each quarter and include them in the "financial expenses" of the current month.

At the end of the quarter, the account will be adjusted according to the "loan interest notice" transferred by the bank. This is a complete process for quarterly closing.

One, every quarter. Only the interest payable needs to be withheld for the first 2 months. and are included separately in the current month"Finance Expenses"Accounts.

That's it. These two months can be said to be entirely in preparation for the actual interest payment in the third month. The third month.

This is when the bank closes at the end of the quarter. You are based on the [Loan Interest Notice] transferred by the bank"Right"Finance Expenses"Account adjustments. After being included in the entries for the current month.

will be actually paid in the end.

Second, as for the actual time of provisioning. At the end of each month. After obtaining the accumulated daily balance of bank loans.

Withholding interest can be calculated immediately. You can start by making the current month's entries. In the afternoon or early of the next day.

The actual provision is about to be completed. I don't think it's going to drag. Even if the actual withholding is completed by means of fund transfer.

It should also be done early. In some cases, there are no actual provisions for the first two months. Only the current month's directory is generated.

Actual provision does not occur until the quarter-end close. Then the cheque transfer is immediately made to the bank.

3. Withholding interest on short-term borrowings. First of all, it is a concept to understand that the provision should be paid and has not been spent. Provision exists because of accrual accounting.

Expenses incurred in the current period are required to be treated as expenses for the current period, regardless of whether they are paid or not. The financial expenses incurred in the current period shall be treated as the financial expenses of the current period regardless of whether they are paid or not. As a finance expense for the current period, of course, the finance expense is debited.

Fourth, the interest is to be paid to the bank, but the interest that should be attributable to the current period is in the following accounting period.

It will be handed over to the bank, so it must be withdrawn in advance. Regardless of whether it is paid or not, as long as it is the interest of the current period, it is included in the financial expense - interest.

For example, if you borrow money, you will pay interest on a quarterly basis, so that you don't pay interest in the first two months of each quarter, and only pay it in the third month, that is, at the end of the quarter. However, these interests are incurred on a monthly basis, so in order to accurately account for monthly profits, it is required to accrue interest on an accrual basis, and the entries are:

Borrow: Finance Expenses - Interest.

Credit: Interest Payable - xx bank.

Accounting treatment of accrued expenses under the new accounting standards:

Under the new standard, interest on rent and short-term borrowings is no longer accounted for in this account.

Withholding interest on short-term borrowings.

According to the new standard, the interest on short-term borrowings withheld by enterprises is accounted for in the "Interest Payable" account.

When interest is withheld, "finance expense" is debited and "interest payable" is credited;

When interest is paid, "Interest Payable" is debited and "Bank Deposit" is credited.

So according to the new standard, the first entry is correct.

The accounting entries that should bear the interest of 4,000 yuan on short-term borrowings this month are: accrual: borrow:

Financial expenses 4000 yuan, credit: interest payable 4000 yuan, payment: borrow:

Interest payable is 4,000 yuan, credit: bank deposit is 4,000 yuan.

Extended Information: Accounting entries are also known as"Accounting formulas"。Abbreviation"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.

According to the number of accounts involved in accounting entries, they can be divided into simple entries and compound entries.

Simple entries refer to accounting entries that involve only two accounts, i.e., accounting entries that borrow one and one loan;

A compound entry is an accounting entry that involves two or more accounts, not including two.

In practice, accounting entries are realized by filling in accounting vouchers, which is an important link to ensure the correctness and reliability of accounting records. In accounting, no matter what kind of economic business occurs, it is necessary to determine the accounting entries of the economic business by filling in the accounting vouchers in accordance with the bookkeeping rules before registering the account, so as to correctly record the accounts and check them afterwards. There are two types of accounting entries: simple entries and compound entries.

Accounting entries are different from accounting vouchers

Accounting vouchers require complete elements and strict audit and preparation procedures, while accounting entries only indicate the accounts and amounts that should be debited and credited in the accounting vouchers, which is the most simplified form of accounting vouchers. Accounting entries usually appear in books only for the convenience of explanation, and accounting entries rarely appear in accounting practice.

The so-called bookkeeping rule method refers to the use of bookkeeping rules"Where there is borrowing, there must be a loan, and borrowing must be equal"Preparation of accounting entries.

The short-term borrowing interest of 800 yuan should be withheld from this month, and the accounting entries are:

Borrow: Finance Expenses - Interest.

800 Credit: Interest Payable - xx Bank.

800 Finance Expense Account:

1. Account nature: expense account.

2. Account purpose: Accounting for the financial expenses incurred by the enterprise, mainly interest fees and handling fees.

3. Account structure: debit credit increases, and various financial expenses incurred in registration include interest expenses, exchange losses and related handling fees; The decrease in debits is recorded for the recording of interest income, exchange gains and amounts transferred to the profit account for the current year at the end of the period; There is no balance after carryover.

4. Detailed account: Set up a detailed account according to the expense item.

Interest Payable Account:

1. Account nature: liability account.

2. Account purpose: to calculate the interest and balance payable by the enterprise in accordance with the contract.

3. Account structure: the credit is increased, and the amount of interest on the loan incurred by the registered enterprise and has not been paid; The debit is reduced, and the amount of interest repaid by the registered enterprise on short-term borrowings; The closing balance is on the credit side and represents the amount of interest that the business has not yet repaid.

Hello, accounting entries for interest on short-term borrowings:

Borrow: Finance Expenses.

Credit: Interest payable.

When paying interest on short-term borrowings.

Borrow: Finance Expenses.

Interest payable. Credit: Bank deposits.

Further information: The interest on short-term loans refers to the additional interest paid by enterprises on various loans borrowed from banks or other financial institutions with a repayment period of less than one year according to the needs of production and operation. It should be remembered here that the time period is less than 1 year (including 1 year) before it can be counted as a short-term loan.

The interest expense incurred by an enterprise in obtaining short-term loans should generally be treated as financial expenses and included in the profit or loss for the current period.

Classification of Interest Payments:

Since the term of short-term loans is 1 year or less, the interest can be divided into the following points when the interest is settled:

Interest is paid on a monthly basis;

Interest is paid quarterly;

Interest is paid on a semi-annual basis;

One year after arrival, the principal and interest will be repaid in a lump sum.

Accounting entries for interest on withholding borrowings: The purpose of setting up accounts for amortized expenses and withholding expenses before the revision of the standard is to strictly divide the benefit period of expenses according to the accrual principle, and to correctly calculate the costs and profits and losses between each accounting.

So how do you make accounting entries for withholding borrowing interest? 1. Withholding expenses refer to the unpaid expenses that have been withheld by the enterprise but have not yet been actually paid.

Withholding interest refers to the interest on working capital bank loans that should be borne by the enterprise in the current period according to the regulations, but has not yet been paid and deposited in advance. For example, the interest expense of a working capital bank loan settled on a quarterly basis should be included in the product cost in advance in monthly installments according to the plan after the beginning of the quarter, and then settled and paid when the bank notifies the bank of the implementation of the interest expense at the end of the quarter. The withholding interest of the enterprise shall be accounted for through the "Withholding Expenses" account, and when the interest is withheld, the "Financial Expenses - Interest Expenses" account will be debited and the "Withholding Expenses" account will be credited; When interest is paid, the Withholding Expense account is debited and the Bank Deposit account is credited.

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.

1. The accounting entries for withholding interest on short-term bank borrowings borne in the current month are:

Borrow: Finance Expense - Interest Expense.

Credit: Interest payable.

2. When paying interest on bank loans:

Debit: Interest payable.

Credit: Bank deposits.

3. Accounting for interest payable:

1. On the balance sheet date, the interest expense shall be calculated and determined according to the amortized cost and the effective interest rate, and the accounts of "interest expense", "construction in progress", "financial expenses" and "R&D expenditure" shall be debited, the unpaid interest payable shall be calculated and determined according to the contract interest rate, and the account of "long-term borrowing - interest adjustment" shall be debited or credited according to the difference.

2. If the difference between the contract interest rate and the actual interest rate is small, the contract interest rate can also be used to calculate and determine the interest expense. When interest is actually paid, this account is debited and accounts such as "Bank Deposit" are credited.

3. The credit balance at the end of the period reflects the unpaid interest payable by the enterprise.

Withholding expenses refer to expenses that should be included in the cost of products or commodity circulation fees during the benefit period, and are actually paid in subsequent months. For example, interest on bank borrowings is paid on a quarterly basis, but the interest expense should be borne by the cost of the product or the circulation of goods in each month before the interest is paid. The provision and payment of withholding expenses is made through the "Withholding Expenses" account.

The account is credited (or increased) when a provision is made, and the account is debited (or debited) when a fee is paid. The credit (increase) balance, which represents the expenses that have been withheld and have not yet been paid, is shown in the balance sheet as an expense item withheld.

The interest on bank loans withheld by enterprises belongs to the accounting elements of [responsibility], and more precisely, it belongs to current liabilities!

Withholding expenses belong to the liability account because they belong to: the expenses that should be paid but have not been paid in advance become the liabilities of the enterprise.

That is, it belongs: according to the operating conditions and actual situation of the enterprise, a part of the expenses that have not occurred and will be incurred, in order to ensure that the net profit of each month is true, so it can only be reversed from the withholding and the next month, because the withholding is an expense, so it can only be in the liability account.

Withholding expenses are the expenses payable and unpaid in advance, such as paying bank loan interest, usually paying loan interest once a quarter, then in the first two months of the quarter, the loan interest payable is calculated in advance according to the loan interest rate, and paid to the bank in the third month.

The reason for the accrual basis and the requirement of reasonable cost allocation is that the provision expense is generally a liability of less than one year, so the provision expense is a current liability.

The accounting entries for interest on bank loans withheld by enterprises are:

Borrow: Finance Expenses.

Credit: Interest payable.

Therefore, the interest on bank loans withheld by enterprises belongs to two accounting elements, namely profit and loss and liability.

Pay short-term borrowings.

The interest can be accrued, or it can be directly processed according to the bank deduction notice.

Because the loan is subject to interest every month, and the bank collects some on a monthly basis, and some on a quarterly basis. In order to balance the expenses, the accounting treatment requires interest to be withheld every month.

1. When accruing:

Borrow: Finance Expenses.

Interest expense. Credit: Withholding expenses.

Interest expense 2. Only when you pay is you can see the entry.

Borrow: Provision for expenses - working capital.

Interest. Credit: Bank deposits.

At present, it is common to use the "Interest Payable" account instead of the "Withholding Expenses - Interest on Working Capital" account.

For short-term borrowing interest, if it is paid quarterly and the amount is large, it can generally be withheld and included in the expense on a monthly basis. What does it mean to withhold interest on short-term borrowings? How to do the accounting? This article will answer the above questions in detail.

Withholding refers to the meaning of withholding and withholding, and the corresponding business occurs randomly, and the corresponding monetary capital expenditure must be used before withholding is used. If the interest on short-term loans is paid quarterly, according to the accrual basis, the interest expense of short-term loans needs to be recognized every month, and the interest expense per mu should be withheld on a monthly basis before payment, which should be recognized as the monthly expense and paid at the end of the quarter.

Accounting treatment of interest on short-term borrowings.

Borrow: Finance Expenses.

Credit: Interest payable.

When paying interest on short-term borrowings.

Borrow: Finance Expenses.

Interest payable. Credit: Bank deposits.

Do I need to accrue interest on short-term loans?

Advantages and disadvantages of short-term borrowing.

Short-term borrowings refer to all kinds of borrowings borrowed from banks or other financial institutions by enterprises for production and operation needs with a repayment period of less than one year. The advantages and disadvantages of finch lead points are as follows:

Advantages: 1. Short-term borrowing is fast in financing and flexible in the use of funds;

2. The cost of short-term borrowing capital is low, and the final repayment amount is small;

Disadvantages: 1. The number of short-term loans is limited, and the financing risk is large;

2. There is a lot of interest that needs to be repaid every month.

What is the account of the interest on short-term borrowings borrowed for construction?

The interest on short-term borrowings borrowed for construction should be included in the "construction in progress" account if it meets the capitalization conditions; If it is not eligible for capitalization, it should be included in the Finance Expense – Interest account.