How to write the accounting entries for CCB’s recovery of loan principal and interest?

CCB’s recovery of loan principal and interest means that after the user applies for a loan with CCB, CCB will deduct the corresponding loan principal and interest according to the loan contract. If the user has not applied for a CCB loan but receives such a text message, he or she can contact CCB directly and ask customer service staff to check whether there was an error when entering the mobile phone number.

It's just that the mobile phone number is entered incorrectly. After CCB corrects it, the user will not receive any deduction SMS information, but this usually takes a few working days to process.

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How to make accounting entries to recover loan principal and interest?

1. When granting a loan:

Borrow: Loan----Principal

Loan: Take deposits

2. Installment When recognizing interest income:

Debit: interest receivable

Credit: interest income

3. When interest is actually received and deposited with the same bank:

Borrow: Deposits from other banks

Loan: Interest receivable

4: When the principal is recovered:

Borrow: Deposits received

Loan: Loan----Principal

Note: The interest income in the current period when the principal is recovered shall be processed according to the above steps 2 and 3, which is omitted here.

How to write the accounting entries for payment of loan principal and interest?

Loan received,

Borrow: bank deposit

Loan: short-term borrowing (long-term borrowing)

Accrue interest

Debit: Financial expenses--Interest

Loan: Interest payable

Pay interest

Debit: Interest payable

Loan : bank deposit

Repay the loan when due,

Borrow: short-term borrowing (long-term borrowing)

Loan: bank deposit

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