Understand Interest Received Journal Entry With Example

 Welcome back students, today we are going to solve some problems on interest-received journal entries with an example.

This post will help you understand how to make journal entries for received interest if you guys are new in the field of accounting then you can solve these questions and increase your knowledge about basic entries.

Before we start let me tell you answers to some of the question which is commonly asked by students.

Q.1: interest received is which type of account?

 it represents income earned on a financial account or investment but the account type can vary some common examples include:

• Savings Account

• Certificate of Deposit (CD)

• Money Market Accounts

• Dividend Stocks

• Peer-to-Peer Lending

• Treasury Securities

• ETC

Now let's start our example:

Interest Received Journal Entry 

• Example 1:

Assuming the following information:

• Business Name: ABC Inc.

• Bank: ABC Bank

• Savings Account Number: 12345

• Interest Received: $1,000

• Date of Interest Receipt: September 16, 2023

1.) Debit Savings Account entry: 

As we know interest is an earned income that's why it goes into debit section:

Date	Account	Debit ($)	Credit ($)
2023-09-16	Bank Account (12345)	1,000

2.) Credit (Increase) Interest Income:

Date	Account	Debit ($)	Credit ($)
2023-09-16	Interest Income		1,000

 Received Interest From The Bank Journal Entry

Required Info

• Business Name: XYZ Inc.

• Bank: ABC Bank

• Savings Account Number: 7890

• Interest Received: $2,500

• Date of Interest Receipt: October 15, 2023

 journal entry:

1.) Debit (Savings Account 7890):

Date	Account	Debit ($)	Credit ($)
2023-10-15	Bank Account (7890)	2,500

2.) Credit 

Date	Account	Debit ($)	Credit ($)
2023-10-15	Interest Income		2,500

As you see Received Interest From The Bank Journal Entry, and Interest Received Journal Entry both have the same result so you don't have to be confused with words.

Conclusion

Here in this post, we add some examples for interest-received journal entries so if you are learning accounting then you can learn this topic from here.