How Do I enter interest accrued to my company Deposit account

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How Do I enter Interest Accrued to my company Deposit account? 

 

I have created a standard bank account and done all the account deposit transfer entries, but I do not see an easy way to enter interest accruals, which the bank pays out every 3 months or so!
Do I have to make the Bank a client for invoice purposes?

2 answers

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Peter Connor ⋅ Staff August 15, 2014
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Hi,
Any charges the bank make are like a standard bill and need to be treated as so. Yep, just create a bill. You can also do it via our double entry system but I think that’s best left to an accountant. 
Just create a new bill every 3 months.
Tks
Pete

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  1. info@doggy.ie August 18, 2014
    Hi Peter Thanks for the answer, but I am not recieving an interest charge from the Bank...just the opposite I am recieving interest from them, so it is not like I am recieving a bill. I guess it will be in money in, but without the invoice. So do I create a client out of the bank or is there another way? Darren
  2. Peter Connor August 18, 2014
    Darren,

    Let me chase this one up with Johnny and see if we can do it without touching Journal Entries.

    Pete
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john_bullet ⋅ Staff August 18, 2014
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You can add the interest income as a Manual Journal Entry under the My Company dropdown menu

  1. Select ‘Interest Income’ under ‘Revenue’ from the ‘Account’ dropdown and enter the interest payment into the ‘Credit’ field
  2. Select ‘Bank Account’ under ‘Assets’ from the ‘Account’ dropdown and the interest payment into the ‘Debit’ field, and also select which of your bank accounts the interest was paid into.
  3. Enter the date the interest was received, and also enter a description.
  4. Click Review and then Save.

The manual journal entry created will record the money as interest income, and will also record the the money was received into your bank account, for bank reconciliation purposes.
John.
 

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  1. info@doggy.ie August 19, 2014
    Thanks John, Peter, That did it

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