Nowadays, the frequency of using credit cards is getting higher and higher. Under normal circumstances, when small and medium-sized enterprises pay for goods, they will use credit cards to pay for their expenses because of the lack of liquidity. So what should be done in the accounting entries of using credit cards to pay for goods?

accounting entries for payment by credit card

debit: other monetary funds-credit card deposits

loan: bank deposits

what are the other monetary funds?

other monetary funds refer to all kinds of monetary funds except cash and bank deposits. Including foreign deposits, bank draft deposits, bank promissory notes deposits, credit card deposits, credit card deposit deposits and investment deposits.

enterprises usually set up "other monetary funds" to account for bank draft deposits, cashier's check deposits, credit card deposits, letter of credit deposit deposits, investment deposits, foreign deposits and other monetary funds of enterprises. Enterprises to increase other monetary funds, debit the subjects, credited to the "bank deposit" subjects; Reduce other monetary funds, debit related subjects and credit this subject. This course can be accounted for in detail according to bank draft or promissory note, the payee of letter of credit, and the opening bank of foreign deposits, respectively, such as bank draft, bank promissory note, credit card, letter of credit deposit, investment deposit and foreign deposits. The debit balance at the end of the course reflects other monetary funds held by the enterprise.

what is a bank deposit?

Bank deposit is the money stored in the bank, which is an integral part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank to handle deposit, withdrawal and transfer settlement. Except for a small amount of cash within the prescribed limit, the monetary funds of the enterprise must be deposited in the bank. The bank deposits of the enterprise mainly include: settlement account deposits, letter of credit deposits, foreign deposits and so on. The cashier is responsible for the receipt and payment of bank deposits. For each bank deposit income and expenditure business, accounting vouchers must be prepared according to the audited original vouchers. In accounting, bank deposits belong to the asset class, and the ending balance is on the debit side. In accounting entries, debit indicates increase. The lender indicated a decrease.