Accounting entries of company borrowing from individuals
The company's borrowing from individuals is included in the current account, and the interest paid is included in the financial expenses. The accounting entries are as follows:
1. When borrowing money:
Debit: bank deposit
Credit: other payables
2. When the interest is accumulated on schedule.
Debit: financial expenses
Loan: interest payable
3. When paying interest:
Borrow: interest payable
Loans: bank deposits
Taxes payable-personal income tax payable
4. When paying taxes:
Borrow: taxes payable-personal income tax payable
Loans: bank deposits
5. When the principal is returned
Borrowing: Other payables/short-term loans.
Loans: bank deposits
Accounting entries of company borrowing from financial institutions
1, medium and long-term loans:
When an enterprise borrows money from a bank (or other financial institution):
Debit: bank deposits/funds in other currencies/cash on hand.
Loan: Long-term loan-principal
The loan interest payable to banks (or other financial institutions) shall be accrued annually:
Debit: financial expenses
Loan: interest payable
When the repayment period stipulated in the enterprise's long-term loan expires, the enterprise needs to return the principal and loan interest of the bank (or other financial institutions).
Borrow: interest payable
Principal of long-term loan
Long-term loans-accrued interest
Loans: bank deposits/funds in other currencies/cash on hand.
2. Short-term loans:
When an enterprise borrows money from a bank (or other financial institution),
Debit: bank deposits/funds in other currencies/cash on hand.
Loan: short-term loan-principal
When an enterprise accrues loan interest payable every month,
Debit: financial expenses
Loan: interest payable
When the short-term loan term expires, the enterprise needs to repay the principal and loan interest.
Borrow: interest payable
Principal of short-term loan
Loans: bank deposits/funds in other currencies/cash on hand.
The financial expenses account is used to calculate the financing expenses incurred by enterprises for raising production and operation funds, such as interest expenses incurred in the process of production and operation of enterprises, net exchange losses (except for commodity circulation enterprises and insurance enterprises, which should be accounted for separately and not included in financial expenses), fees of financial institutions, bond printing fees, foreign loan guarantee fees and other expenses related to financing activities. In case of financial expenses, the financial expenses shall be debited and credited to the corresponding subjects; Carry forward the balance of undergraduate projects to the end of the period.
Current year profit
Theme. There is no balance after carry-forward.