Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Interest accrued on loans and financing not yet paid

Common Journal Entries

Accrue loan interest

Dr. Interest Expense
Cr. Accrued Interest

Pay accrued interest

Dr. Accrued Interest
Cr. Bank Account

Accrue overdraft interest

Dr. Interest Expense
Cr. Accrued Interest

Adjust accrued interest after restructuring

Dr. Accrued Interest
Cr. Interest Expense

Accrue loan interest

Dr. Interest Expense
Cr. Accrued Interest

Pay accrued interest

Dr. Accrued Interest
Cr. Bank Account

Accrue overdraft interest

Dr. Interest Expense
Cr. Accrued Interest

Adjust accrued interest after restructuring

Dr. Accrued Interest
Cr. Interest Expense

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 37 Provisions, Contingent Liabilities and Assets
US GAAP ASC 405 Liabilities

❓ Frequently Asked Questions

Q: What are accrued interests?

A: Interest on loans or deposits that has accrued over time but has not yet been paid or received.