And the cash flow statement, to calculate the cash flow generated by the operating process, investment income is the cash flow generated by the investment process, of course, to be subtracted from the total cash profit.
I, interest expense
Interest expense (Interestexpense) refers to the interest expense on temporary borrowings. Under the precondition that the production of cash and payment as the basis of accounting, the so-called expenditure should be based on the actual payment, that is, the outflow of funds, marking the reduction of cash and bank deposits. In terms of interest expenses, to the personal account interest, its funds are not outflow, cash, bank deposits are not reduced, therefore, to the personal interest should not be charged as interest expenses.
Two, accounting for interest expenses
1. This account accounts for interest expenses incurred by the enterprise (financial), including the absorption of a variety of deposits (unit deposits, personal deposits, credit card deposits, special deposits and transfer of loan funds, etc.), and other financial institutions (central bank, interbank, etc.) between the occurrence of funds transactions, selling and repurchasing financial assets and other interest generated. repurchase of financial assets, etc., as well as unrecognized financing expenses apportioned on a period-by-period basis.
2. This account should be carried out in accordance with the interest expense items for detailed accounting.
3. On the balance sheet date, the enterprise should be calculated in accordance with the guidelines for the recognition and measurement of financial instruments to determine the amount of interest expense, debit this account, calculated in accordance with the contractual interest rate nominal interest rate to determine the amount of interest payable, credit "interest payable", "sale and repurchase of financial assets "The difference is debited or credited to "Deposits from absorption--Interest adjustments" and so on.
4. At the end of the period, the balance of this account should be transferred to the "profit for the year" account, and there is no balance in this account after the transfer.
Temporary loans are generally shorter term, therefore, the accounting treatment of interest expense usually occurs in conjunction with the repayment of temporary loans. Return of temporary loans, according to the principal amount of the loan, debit "temporary loans" account, according to the interest on the loan, debit "funds expenditure - interest expense" account, according to the total principal and interest credited to the "bank deposits - expenditure account "
Example
Example: A social health insurance organization pays the bank 60,000 yuan of temporary borrowing principal and 5,000 yuan of interest on the borrowing, based on the bank's interest billing notice, make the following accounting entries:
Borrowing: Temporary borrowing 60,000:
Social health care fund expenditure - interest expense 5000:
Credits: Bank deposits - Expenditures account 65000: