1. Accounting for fund-raising business
1.When a business accepts monetary funds from investors.
Borrow: Bank deposit.
Credit: Paid-in capital (the detailed account is the specific right holder).
2.When an enterprise accepts an investor's investment in fixed assets.
Borrow: Fixed assets.
Credit: paid-up capital.
3.When a company accepts an investor's investment in intangible assets.
Borrow: Intangible assets.
Credit: paid-up capital.
4.When a capital premium is involved.
Borrow: bank deposits, fixed assets, etc. (input method).
Credit: Paid-up capital (recognized share capital).
Capital reserve – capital premium (premium part).
5.Capital reserve is converted into paid-in capital.
Borrow: Capital Reserve - Conversion to Paid-in Capital.
Credit: Paid-up capital - shareholders A, shareholders B.
6.When borrowing short-term loans.
Borrow: Bank deposit.
Credit: Short-term borrowing.
7.When accruing interest.
Borrow: Finance Expenses.
Credit: Interest payable.
8.When the principal and interest are returned.
Borrow: Short-term borrowing.
Interest payable. Credit: Bank deposits.
9.When borrowing long-term borrowing.
Borrow: Bank deposit.
Credit: Long-term borrowing.
10.When accruing interest.
Borrow: Construction in progress (financial costs).
Credit: Long-term borrowings (interest payable).
11.When repaying principal and interest.
Borrowing: Long-term borrowing (when the principal and interest are repaid in one lump sum at maturity).
Interest payable) (when the principal is repaid at maturity and the interest is paid regularly).
Credit: Bank deposits.
Second, the accounting of the process business
1.When the purchase does not require the installation of equipment, and the payment has been made.
Borrow: Fixed assets.
Tax Payable - VAT Payable (Input Tax).
Credit: Bank deposits.
2.When you carry forward the cost of a fixed asset that has been built by yourself.
Borrow: Fixed assets.
Credit: Construction in progress.
3.The value of the fixed assets invested by the investor is confirmed by the parties to the investment.
Borrow: Fixed assets.
Credit: paid-up capital.
4.Financing lease of fixed assets.
Accounting for initial direct expenses.
Borrow: Fixed assets.
Credit: Bank deposits.
The allocation of financing costs is not recognized.
The rent payable by the lessee for each installment shall be based on the amount of rent paid:
Borrow: Long-term payables - financial lease payables.
Credit: Bank deposits.
Based on the amount of financing charges that should be recognized in the current period.
Borrow: Finance Expenses.
Credit: Financing charges are not recognized.
Accounting for performance costs.
Borrow: Manufacturing Expenses Operating Expenses.
Credit: Bank deposits.
Accounting for contingent rents.
Borrow: Manufacturing Expenses Operating Expenses.
Credit: Bank deposits.
5. Donated fixed assets.
Debit: Fixed asset (determined recorded value).
Credit: Deferred tax (income tax due in the future).
Non-operating income (the balance of the determined recorded value minus future income tax payable).
Bank deposits, etc. (relevant taxes payable).
6.When the purchase of materials, the payment for materials and input tax are paid in full.
Borrow: Materials in transit - material A.
Tax Payable - VAT Payable (Input Tax).
Credit: Bank deposits.
7.When the purchase of materials is not paid.
Borrow: Supplies in transit.
Tax Payable - VAT Payable (Input Tax).
Credit: Accounts payable.
8.When purchasing materials and issuing commercial bills.
Borrow: Supplies in transit.
Tax Payable - VAT Payable (Input Tax).
Credit: Notes payable.
9.When the payment is made.
Debit: Accounts payable.
Credit: Bank deposits.
10.When paying for bills due.
Debit: Notes payable.
Credit: Bank deposits.
11.When the commercial draft is issued before the payment is owed.
Debit: Accounts payable.
Credit: Notes payable.
12.When the notes are due and unable to repay.
Debit: Notes payable.
Credit: Accounts payable.
13.When the purchase price is prepaid.
Debit: Advance payments.
Credit: Bank deposits.
Borrow: Supplies in transit.
Tax Payable - VAT Payable (Input Tax).
Credit: Contract assets.
14.When the material is inspected and put into the warehouse.
Borrow: raw materials.
Credit: Supplies in transit.
15.When an enterprise handles a cashier's check or bank draft.
Borrow: Other monetary funds --- bank cashier's check deposit (but do not sign and collect the bill, at this time).
- Bank draft deposits.
Credit: Bank deposits.
16.When purchasing materials and issuing cashier's checks and bank drafts.
Borrow: Supplies in transit.
Tax Payable - VAT Payable (Input Tax).
Credit: Other Monetary Funds --- Cashier's Check Deposits.
- Bank draft deposits.
17.When the purchase price and VAT are paid in full.
Borrow: Material purchase (at actual cost).
Tax Payable – VAT payable.
Credit: Bank deposits.
18.When the material is inspected and put into the warehouse.
Borrow: raw materials.
Credit: Material Purchases (at Planned Cost).
19.Carry-forward overruns.
Borrow: Material cost variance.
Credit: Material procurement.
20.Carry-forward savings.
Borrow: material procurement.
Credit: Material cost variance.
21.Carry-forward overruns.
Borrow: production costs, etc.
Credit: Material cost variance.
22.Carry-forward savings.
Borrow: Material cost variance.
Credit: production costs, etc.
3. Accounting of production process business
1.In the production of requisitioned materials.
Borrow: production cost (production product requisition).
Manufacturing expenses (general consumption of the workshop).
Management expenses (requisitioned by the management department).
Construction in progress (project requisition).
Credit: raw materials.
2.When settling the remuneration of employees.
Borrow: Production costs (wages of production workers).
Manufacturing expenses (shop floor management compensation).
Administrative expenses (executive compensation).
Construction in progress (construction worker compensation).
Selling expenses (salaries for personnel with a dedicated sales structure).
Credit: Employee Compensation Payable.
3.When payroll is paid.
Borrow: Employee remuneration payable.
Credit: Bank deposits (or cash on hand).
Other payables.
Taxes payable --- individual income tax payable.
4.When long-term amortized expenses are incurred.
Borrow: Long-term amortized expenses.
Credit: Bank deposits (cash on hand).
5.At the time of actual amortization.
Borrow: Administrative expenses.
Manufacturing costs. Credit: Long-term amortized expenses.
6.When paying for workshop utilities by bank deposit.
Borrow: manufacturing costs.
Credit: Bank deposits (cash on hand).
7.When accruing depreciation of fixed assets.
Borrow: Manufacturing expenses (fixed assets for production).
Administrative expenses (fixed assets for management).
Other operating costs (operating leased fixed assets).
Selling expenses (fixed assets for the sales department).
Construction in progress (fixed assets for engineering construction).
Credit: Accumulated depreciation.
8.At the end of the month, when the manufacturing expense is carried forward.
Borrow: production cost - product A.
Product B. Credit: Manufacturing expenses.
9.Carry forward the production cost of the finished product.
Borrow: Inventory Commodities - Product A.
-B products. Credit: Cost of Production - Product A.
-B products. Fourth, the accounting of the sales process business
1.When you sell products and generate revenue.
Debit: Notes receivable (receipt of commercial bills).
Bank deposits (receipt of cheques, bank drafts, entrusted collections, etc.).
Accounts receivable (uncollected).
Accounts receivable in advance. Credit: main business income.
Tax Payable – VAT payable (output tax).
2. When accounts are received in advance.
Borrow: Bank deposit.
Credit: Accounts received in advance.
3.When the arrears unit issues a commercial draft to offset the arrears.
Debit: Notes receivable.
Credit: Accounts receivable.
4.When the bill is due and not collected.
Debit: Accounts receivable.
Credit: Notes receivable.
5.Carry forward taxes and surcharges.
Borrow: Taxes and surcharges.
Credit: Tax Payable – Excise Tax Payable.
Urban construction tax should be paid.
Education fee surcharge payable.
- Local education fee surcharge is due.
6.When the product is returned and the payment has been made by bank deposit.
Borrow: main business income.
Tax Payable – VAT payable (output tax).
Credit: Bank deposits.
7.When giving a cash discount to a partner.
Borrow: Bank deposit.
Finance Expenses. Credit: Accounts receivable.
8.When the cost of a sold product is carried forward.
Borrow: Cost of main business.
Credit: Inventory of goods.
9.When selling materials and money in the bank.
Borrow: Bank deposit.
Credit: Other business income.
Credit: Tax Payable – VAT Payable (Output Tax).
10.When the right to use a trademark is transferred and the money is deposited in a bank.
Borrow: Bank deposit.
Credit: Other business income.
11.When leasing packaging or fixed assets, and depositing the money in the bank.
Borrow: Bank deposit.
Credit: Other business income.
Tax Payable – VAT payable (output tax).
12.When carrying forward the cost of materials sold, the cost of packaging, and the provision of depreciation.
Borrow: Other operating costs.
Credit: raw materials.
Turnover materials. Accumulated depreciation.
13.When carrying forward the business tax payable for the transfer of the right to use the trademark.
Borrow: Business tax and surcharge.
Credit: Tax Payable - Business Tax Payable.
14.When a selling fee is incurred.
Borrow: Selling expenses.
Credit: Bank deposits.
Employee compensation payable.
Accumulated depreciation. Raw materials.
5. Accounting for the formation and distribution of financial results
1. When the employee borrows travel expenses in advance.
Debit: Other receivables.
Credit: cash on hand.
Bank deposit (when a cheque is written).
2.When reimbursement of travel expenses.
Borrow: Administrative expenses.
Cash on hand. Credit: Other receivables.
3.When paying administrative fees directly.
Borrow: Administrative expenses.
Credit: cash on hand (bank deposits).
4.Amortization of book and newspaper expenses.
Borrow: Administrative expenses.
Credit: Accounts prepaid (expenses to be amortized).
5.When paying vehicle and vessel use tax, real estate tax, land use tax, and stamp duty.
Borrow: Administrative expenses.
Credit: Bank deposits.
6.**When trading financial assets.
Borrow: Bank deposit.
Credit: Transactional financial assets.
Investment income. 7.When the funded entity declares the distribution of cash dividends.
Borrow: Dividends receivable.
Credit: Investment income.
8.When dividends are actually received.
Borrow: Bank deposit.
Credit: Dividends receivable.
9.When forfeiture revenue is received.
Borrow: cash on hand (bank deposits).
Credit: Non-operating income.
10.When donating cash to an external party.
Borrow: Non-operating expenses.
Credit: bank deposits, etc.
11.When settling income tax.
Borrow: Income tax expense.
Credit: Tax Payable - Income Tax Payable.
12.When you carry forward your income.
Borrow: main business income.
Other business income.
Non-operating income.
Investment income. Fair value change gain or loss.
Prior Year Profit and Loss Adjustments.
Credit: Profit for the year.
13.When the fee is carried forward.
Borrow: Profit for the current year.
Credit: Cost of Principal Operations.
Sales tax and surcharges.
Other business costs.
Selling expenses. Management fees.
Finance Expenses. Non-operating expenses.
Income tax expense.
14.When the surplus reserve is withdrawn.
Borrow: Profit Distribution - Withdrawal of Statutory Surplus Reserve.
Withdraw any surplus reserve.
Credit: Surplus Reserve – Statutory Surplus Reserve.
Arbitrary surplus reserve.
15.When cash dividends are distributed.
Borrow: Profit Distribution – Cash Dividends Payable.
Credit: Dividends payable.
16.When a **dividend is distributed.
Borrow: Profit distribution - dividends converted into capital.
Credit: paid-up capital.
17.When the surplus provident fund is used to cover the loss.
Borrow: surplus reserve.
Credit: Profit distribution--- surplus reserve to make up for losses.
18.At the end of the year, when the net profit realized in the current period is carried forward.
Borrow: Profit for the current year.
Credit: Profit Distribution – Undistributed Profits.
19.Close the "Profit Distribution" detail account at the end of the year.
a.When closing an account with a debit incursion detail.
Debit: Profit distribution - undistributed profit.
Credit: Profit Distribution – Withdrawal of Statutory Surplus Reserve.
Cash dividends payable.
Dividends converted to share capital.
b.When closing a detailed account with a credit incursion.
Borrow: Profit distribution - surplus reserve to make up for losses.
Credit: Profit Distribution – Undistributed Profits.
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