Account Information

Account Type Income Statement
Normal Balance Debit

Definition

Interest paid on bank loans and credit facilities

Common Journal Entries

Record paid bank loan interest

Dr. Bank Interest Expense
Cr. Bank Account

Accrue bank interest expense

Dr. Bank Interest Expense
Cr. Loan Interest Payable

Record overdraft interest

Dr. Bank Interest Expense
Cr. Bank Overdraft

Transfer bank interest to income summary

Dr. Income Summary
Cr. Bank Interest Expense

Record paid bank loan interest

Dr. Bank Interest Expense
Cr. Bank Account

Accrue bank interest expense

Dr. Bank Interest Expense
Cr. Loan Interest Payable

Record overdraft interest

Dr. Bank Interest Expense
Cr. Bank Overdraft

Transfer bank interest to income summary

Dr. Income Summary
Cr. Bank Interest Expense