Bank Interest Income

Code: 4811
👁 Views: 105

Account Information

Financial Statement Income Statement
Normal Balance Credit

Definition

Interest earned from balances deposited with banks

Common Journal Entries

Accrue bank interest income

Dr. Bank Interest Income
Cr. Interest Income

Receive bank interest on account

Dr. Bank Account
Cr. Bank Interest Income

Reclassify bank interest

Dr. Bank Interest Income
Cr. Other Revenue

Adjust bank interest after review

Dr. Bank Account
Cr. Bank Interest Income

Accrue bank interest income

Dr. Bank Interest Income
Cr. Interest Income

Receive bank interest on account

Dr. Bank Account
Cr. Bank Interest Income

Reclassify bank interest

Dr. Bank Interest Income
Cr. Other Revenue

Adjust bank interest after review

Dr. Bank Account
Cr. Bank Interest Income

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 310 Receivables

❓ Frequently Asked Questions

Q: How are bank interest earnings recorded when accrued?

A: Dr. Accrued Interest, Cr. Bank Interest Income. Upon receipt: Dr. Bank, Cr. Accrued Interest.