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Account related answer
Interest expense in an accounting means the total interest expense to be reported in particular period 'Statement of Profit & Loss' on accrual basis, irrespective of the fact whether it is paid or yet to be paid (payable).
While the Interest payable is that part of interest expense which has not yet been paid uptill reporting date. So, recorded/presented as a liability in that particular date 'Statement of financial position'
Interest expense relates with the closure of the respective financial year of reporting while interest payable is interest expense of future period not related to the current financial year but an obligation in the near future henceforth must considered as a liability under accrual basis.
Interest Expense means interest is already paid (payment vouche)
Interest payable means interest to be paid (Liabilities)
Interest Expenses in the actual amount of the Interest paid and the Interest payable is the accumalation of the Interest amount which is not yet paid.
Also the provision of the Interest amount done at the end of the financial year which is schedule to be payable in the next year can also be termed as Interest payable.
Interest expense is an expense that a company is expected to make payments within a given period say a year. This expense may be incurred already as per a bank loan contract for instance and whether it has been paid or not it's an expense for the period of the loan.
Interest payable is part of the interest expense that remains unpaid at the end of the year and it's a liability.
If the interest expenses are not paid yet, we will accrue the expenses for the year and debit interest expenses and credit interest payable. Actually interest expenses will calculate when booked for financial position it is simply company liability.
Interest expense is an account on a business's income statement that shows the total amount of interest owing on a loan. Interest payable is an account on a business's income statement that show the amount of interest owing but not yet paid on a loan
