How to prepare discount accounting entries for bank acceptance bills
Bank acceptance bill is one of commercial bills. For bank acceptance bill discount business, bills receivable account accounting should be set. What are the relevant accounting entries?
Bank Acceptance Bill Discount Accounting Entry
Debit: bank deposit
Financial expenses
Credit: notes receivable
Overview of acceptance bill
An acceptance bill refers to a bill that has been accepted by a bank. That is, the bill issued by the seller in order to claim payment from the buyer in transaction activities, and the drawee has indicated the word "acceptance" and signature on the face of the bill promising payment at maturity. The drawee becomes the acceptor of the bill after acceptance. "Commercial acceptance bill" refers to the bill accepted by the buyer, and "bank acceptance bill" refers to the bill accepted by the bank.
What can I do to turn the bank acceptance bill into cash?
If there is an expiration date. That is to say, when the maturity date is reached, you can take it to the bank to cash it.
If a company receives an acceptance bill issued by another company, but it does not expire until half a year later, what should be done to make it cash or realize it as soon as possible?
There are two ways:
The first is to apply to the bank for discount, which only requires the consent of your deposit bank and payment of certain financial expenses to your deposit bank
The second is to endorse the transfer to your supplier.
What is acceptance bill discount?
Discount refers to the act that the holder of a bank acceptance bill transfers the rights of the bill to the bank by paying a certain interest in order to obtain funds before the maturity date of the bill. It is a way for the bank to finance the bill holder.
Nature of discount: discount is an asset business of the bank. The payer of the bill is in debt to the bank. The bank actually has an indirect loan relationship with the payer.
Discount interest rate: floating upward on the basis of the current rediscount interest rate of the People's Bank of China. The discount interest rate is the market price, which is determined by both parties through consultation, but cannot exceed the current loan interest rate.
Calculation of discount interest: discount interest is the interest paid by the payee of a bill to the discount bank to obtain the bill payment before the bill expires. The calculation method is: discount interest=discount amount x discount rate x discount period