How to prepare the accounting entry of one-time income of land rent
If there is idle land, enterprises will generally lease it to obtain a certain amount of rent income. The one-time income from land rent can be included in the "other business income" account for accounting. What about the relevant accounting entries?
Accounting entry of one-time income from land rent
Debit: bank deposit/cash on hand
Credit: other business income
At the same time, tax is accrued:
Debit: other business costs
Credit: Tax payable - VAT payable (output tax)
What is other business income?
It refers to the inflow of economic benefits generated in the daily activities of selling goods, providing labor services and transferring the right to use assets other than the main business income of the enterprise. Such as sales of materials, materials and packaging, transfer of intangible assets, lease of fixed assets, lease of packaging, transportation, and sales of waste materials.
What are other business costs?
It refers to the expenditure incurred in other daily business activities other than the main business activities recognized by the enterprise. Other business costs include the cost of selling materials, the depreciation amount of leased fixed assets, the amortization amount of leased intangible assets, the cost or amortization amount of leased packaging materials, etc. If the cost model is used to measure the investment real estate, the depreciation or amortization of the investment real estate also constitutes the cost of other businesses.
An enterprise shall set up the account of "other business costs" to account for the expenses incurred in other daily business activities other than the main business activities recognized by the enterprise. Other business costs incurred by the enterprise are debited to this account, and credited to such accounts as "raw materials", "reusable materials", "accumulated depreciation", "accumulated amortization", "payroll payable", and "bank deposit". The "Other Business Cost" account performs detailed accounting according to the types of other business costs. At the end of the period, the balance of the "other business cost" account is transferred to the "profit of the current year" account. After carrying forward, the "other business cost" account has no balance.
