Accounting entry of seniority compensation
1. When the enterprise pays seniority compensation:
Debit: administrative expenses - seniority compensation (included in relevant subjects according to the department to which the expenses belong)
Credit: bank deposit
2. Profit carried forward this year:
Debit: Profit of this year
Credit: administrative expenses - seniority compensation (included in relevant subjects according to the department to which the expenses belong)
The enterprise shall pay seniority compensation, and then carry forward the profit of the current year, which shall be accounted through the related secondary account of "administrative expenses" and the account of "profit of the current year". Administrative expenses refer to various expenses incurred by the administrative department of an enterprise for organizing and managing production and operation activities. Profit of the current year refers to the net profit (or net loss) of an enterprise in an accounting year, which belongs to the owner's equity category.