How to make accounting entries for bank SMS service fees?

If you open a basic account in a bank and activate the SMS service function for payment reminders, a certain SMS fee needs to be withheld every month. So how to make accounting entries for bank SMS service fees?

Accounting entries for bank SMS service fees

Debit: financial expenses - SMS service fees

Credit: bank deposits

Used for Borrowing interest for projects under construction that qualify for capitalization should be included in the cost.

Basic accounting processing:

Loan interest

Debit: financial expenses

Loan: interest payable

Bank deposit

What type of account are financial expenses?

Financial expenses are both profit and loss accounts and expense accounts. Because profit and loss accounts include expense accounts, there is no contradiction between the two. In general expense accounts, debits are used to record the increase in expenses, and credits are used to record the amount of expenses converted into profits. Reducing expenses is generally a write-off expense. (Bank interest, the debit of financial expenses is recorded as a red number)

Financial expense account settings: financial expenses - interest income, financial expenses - interest expenses, financial expenses - exchange losses, financial expenses - Handling fee.

Financial expenses refer to the expenses incurred by enterprises to raise funds required for production and operations. It includes net interest expenses, net exchange losses, financial institution fees and other expenses incurred in raising production and operating funds.

Accounting entries for financial expenses

When incurred:

Debit: financial expenses

Credit: bank deposit

Interest payable

At the end of the period, it will be carried forward to the current year's profit:

Debit: current year's profit

Credit: financial expenses