When a company buys a car, in addition to the price of the car itself, what else is included?The taxes and fees incurred in the purchase of automobiles, such as vehicle acquisition tax, production cost of motor vehicle registration certificate, handling fee, license plate fee, etc., shall be included in the original value of fixed assets, and shall be entered into profit or loss through depreciation in subsequent periods.
Proper Accounting Processing:
Borrow: Fixed assets - xx automobiles.
Credit: bank deposits, etc.
In practice, many enterprises also include vehicle and vessel tax in the value of the car, and the vehicle and vessel tax should be included in the tax and surcharge, and should be included in the account when it occurs
Borrow: Taxes and surcharges.
Credit: Tax Payable - Vehicle and Vessel Tax Payable.
When the actual payment is made:
Borrow: Taxes payable - vehicle and vessel tax payable.
Credit: Bank deposits.
Long-term loans refer to all kinds of loans with a loan term of more than one year, and according to the provisions of the accounting system, long-term loans should be divided into two subjects: "principal" and "accrued interest", which are classified:
1) Accrue interest in installments and repay principal and interest in a lump sum at maturity.
2) Pay interest in installments and repay principal when due.
Case 1] Accrue interest in installments, repay principal and interest in a lump sum at maturity:
On January 1, 2021, a manufacturing enterprise borrowed a two-year loan of 600,000 yuan from the Municipal Industrial and Commercial Bank of China for the construction of fixed assets, and the loan contract agreed that the interest rate was 5 per annum, and the interest was calculated on an annual basis, and the principal and interest were repaid at one time when due.
1) When the borrowed money is deposited in the bank:
Borrow: bank deposit 600,000
Credit: Long-term loan principal 600,000
2) When interest is accrued at the end of the first year:
Borrow: 30,000 projects under construction
Credit: Long-term borrowing Accrued interest 30,000
3) When interest is accrued at the end of the second year:
Borrow: 30,000 for financial expenses
Credit: Long-term borrowing Accrued interest 30,000
4) When the loan matures and the principal and interest are repaid:
Borrow: Long-term loan with a principal of 600,000
Accrued interest 60,000
Credit: Bank deposits 660,000
Case 2] Installment of interest and repayment of principal at maturity.
On January 1, 2021, a manufacturing enterprise borrowed a two-year loan of 600,000 yuan from the Municipal Industrial and Commercial Bank of China for the construction of fixed assets, and the loan contract agreed that the interest rate was 5 per annum, and the interest was calculated on an annual basis, and the principal and interest were repaid at one time when due.
1) When accruing interest:
Borrow: Construction in progress (financial costs) 30,000
Credit: Interest payable 3000
2) When paying interest:
Borrow: Interest payable 3000
Credit: Bank deposit 3000