What kind of subjects are financial expenses?

Financial expenses are profit and loss subjects as well as expense subjects. Because the profit and loss account includes the expense account, actually paying means that the expense has occurred, otherwise it is not necessary to pay. The ultimate goal of payment is to obtain income. Only the income obtained is the result of paying the fee, and it is in the lender's place. Payment means an increase in expenses. Payment is a way to generate expenses, not a way to eliminate them. What really bears the cost is income, which is also the content to be expressed in the income statement.

In the general expense account, the debit records the increase of expenses, and the credit records the amount of expenses transferred into profits. Reducing expenses generally means reducing expenses, such as bank interest, and debiting financial expenses with red figures.

The interest expense (financial expense) of the loan in financing is the increase of financial expense and should be debited.