If an enterprise incurs public welfare donation expenditure, it can be accounted in the non operating expenditure account. How to make accounting entries for public donations?
Entries of corporate public welfare donations
Debit: Non operating expenses
Credit: bank deposit
For the above public welfare donations, according to the relevant provisions of the Enterprise Income Tax Law, the part of the public welfare donation expenses incurred by the enterprise that is within 12% of the total annual profit is allowed to be deducted when calculating the taxable income.
Accounting entries for donation of non monetary assets
Debit: Non operating expenses
Credit: inventory goods
Tax payable - VAT payable (output tax)
Non operating expenses belong to profit and loss category. Non operating expenses refer to the losses arising from the liquidation of fixed assets during the production and operation period of an enterprise.
Accounting of non operating expenses:
1、 This account accounts for various non operating expenses incurred by enterprises, including non current asset disposal losses, non monetary asset exchange losses, debt restructuring losses, public welfare donation expenses, extraordinary losses, inventory loss losses, etc.
2、 Detailed accounting can be carried out for this project according to expenditure items.
3、 The loss of non current assets, loss of non monetary assets exchange and loss of debt restructuring recognized by the enterprise shall be handled according to the relevant provisions of "fixed assets liquidation", "intangible assets", "raw materials", "inventory goods", "accounts payable" and other subjects.
The net loss of inventory loss and damaged assets shall be debited to this account and credited to the "pending property loss and surplus" account after being reported and approved according to the management authority.
4、 At the end of the period, the balance of this account should be transferred to the "Profit of the Current Year" account. After carrying forward, there is no balance in this account.
How to make donation accounting entries
The accounting entries for donations are as follows:
Debit: Non operating expenses
Credit: bank deposits, cash on hand
Credit: inventory goods
Credit: tax payable - VAT payable - output tax
Donation expenditure
It refers to the value of various assets donated by an enterprise to the outside world. Donation expenditure refers to the value of various assets donated by an enterprise to the outside world. When confirming and measuring the donation of a non-profit organization, it should be recognized as an expense during the period when it makes a donation or an unconditional donation commitment, and at the same time, it should reduce assets or increase liabilities. The specific treatment depends on the form of benefit giving.
How to make accounting entries for public welfare donations?
The Company's public welfare donations are recorded as:
Debit: Non operating expenses
Credit: bank deposit
With regard to the deduction of public welfare donations, the old tax law adopted the method of deduction within the proportion (within 3% of the taxable income) for domestic enterprises, and there was no proportion limit for foreign-funded enterprises. In order to unify the tax burden of domestic and foreign-funded enterprises, Article 9 of the Enterprise Income Tax Law stipulates that the public welfare donation expenses incurred by enterprises, which are within 12% of the total annual profits, are allowed to be deducted when calculating the taxable income.
Non operating expenses
① When an enterprise transfers a fixed asset, it first carries forward the original value of the fixed asset and the accrued accumulated depreciation amount, debits the Fixed Assets Disposal and Accumulated Depreciation accounts, and credits the Fixed Assets account; After receiving the price agreed by both parties, debit the "bank deposit" and credit the "fixed assets liquidation" title; Finally, carry forward the profit and loss of liquidation, and include it in the profit and loss of asset disposal, no longer accounting through the non operating expenditure account.
② When an enterprise disposes of intangible assets, it should debit the "bank deposit" and other subjects according to the amount actually received, and debit the "accumulated amortization" subject according to the accumulated amortization that has been withdrawn.
How to make accounting entries for public welfare donations
The accounting entry of public welfare donation does this:
1. Donation of monetary assets
Debit: Non operating expenses
Credit: bank deposit, etc
2. Donation of non monetary assets
Debit: Non operating expenses
Credit: inventory goods
Tax payable - VAT payable (output tax)
What is the non operating expenditure account?
Non operating expenses refer to non operating expenses other than main business costs and other business expenses. Such as penalty expenditure, donation expenditure, extraordinary loss, etc. To this end, a "non operating expenditure" account should be set up to account for this part.
When the enterprise incurs various non operating expenditures, it shall be debited to this account; When carrying forward the profit and loss at the end of the period, the debit transferred from the credit to the "Profit of the Current Year" account has no balance after carrying forward.
What is the inventory item account?
Inventory goods refer to the products that have completed all the production processes and been accepted and warehoused, meet the standard specifications and technical conditions, can be delivered to the ordering unit according to the conditions specified in the contract, or can be sold as goods, and various goods that have been accepted and warehoused after outsourcing or subcontracting for sale.
An enterprise should set up an "inventory goods" account to account for the increase or decrease of inventory goods and their balance. When goods are accepted and warehoused, the "production cost" account should be transferred to the "inventory goods" account; When selling inventory goods externally, corresponding accounting treatment shall be carried out according to different sales methods; Goods in stock received from construction in progress shall be transferred at their cost.
