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tres4fomm
Level 2

How enter debit credit in journal entries

journal entry to manually add interest to the bank account and the interest account/.  Which account is debited and which is credited

2 Comments 2
Diana805
Level 2

How enter debit credit in journal entries

Under accrual accounting, you would record the interest when it is earned.  

Dr.  Interest Receivable

 Cr. Interest Revenue

When cash is received:

Dr. Bank Account

  Cr. Interest Receivable


If you're using cash accounting, interest revenue is only recorded when cash is received.   Use the following journal entry:

Dr. Bank Account

  Cr. Interest revenue

qbteachmt
Level 15

How enter debit credit in journal entries

You are describing a Deposit. You don't need to use debit-credit. Enter this as a deposit to Checking, and show that it is Interest income earned.

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