How to make accounting entries for cars sold in 4S stores
The main businesses of the automobile 4S store are: vehicle sales, boutique sales, parts sales, insurance claims, after-sales maintenance, warranty maintenance fees, etc. What are the specific accounting entries for these businesses?
Accounting entries for cars sold in 4S stores
1、 Vehicle sales
1. Prepaid car payment
Debit: prepayment
Credit: bank deposit
2. Receive purchase invoice
Debit: goods in stock
Tax payable - VAT payable (input tax)
Credit: prepayment/bank deposit
3. Selling cars
(1) Advance payment received
Debit: bank deposit
Credit: advances from customers - advances from customers
Other payables - collection (collection of vehicle inspection fee, purchase tax and insurance premium)
2. Issuing motor vehicle invoice
Debit: advances from customers - advances from customers
Credit: main business income - automobile sales income
Tax payable - VAT payable (output tax)
3. Pay insurance premium and purchase tax on behalf of customers
Debit: other payables - collection
Credit: cash on hand/bank deposit
4. Carry forward sales cost
Debit: main business cost - automobile sales cost
Credit: inventory goods
2、 Boutique decoration sales
1. Issuing VAT invoice
Debit: advances from customers - advances from customers
Credit: income from main business - income from fine decoration
Tax payable - VAT payable (output tax)
2. Carry forward decoration cost
Debit: main business cost - fine decoration cost
Credit: inventory goods
3、 Accessory sales
1. Purchase of accessories
Debit: goods in stock accessories
Tax payable - VAT payable (input tax)
Credit: bank deposit
2. Accessory sales
Debit: accounts receivable
Credit: main business income - accessory sales income
Tax payable - VAT payable (output tax)
3. Carry forward the sales cost of accessories
Debit: main business cost
Credit: inventory goods
4、 Insurance claims
1. Generally, the insurance company should pay the bill first for claims and maintenance
Debit: accounts receivable - XX insurance company
Credit: main business income - maintenance income
Tax payable - VAT payable (output tax)
2. Payment collected by insurance company (part of the payment collected by insurance company is to refund the repair cost of the third party)
Debit: bank deposit
Credit: Accounts receivable - XX insurance company
Other payables
3. Refund the third party's repair cost
Debit: other payables - refund of the third party's repair cost
Credit: cash on hand
4. Carry forward repair cost
Debit: main business cost - maintenance
Credit: goods in stock accessories
Payroll payable
5、 After sales maintenance
1. Received advance payment for maintenance
Debit: bank deposit
Credit: advances from customers - advances from customers for maintenance
2. Issue repair invoice
Debit: advances from customers - advances from customers for maintenance
Credit: main business income - maintenance income
Tax payable - VAT payable (output tax)
3. Carry forward repair cost
Debit: main business cost - maintenance cost
Credit: inventory goods
Payroll payable
6、 Warranty and maintenance fees
1. Warranty and maintenance costs
Debit: accounts receivable - manufacturer
Credit: main business income - accessories sales income - man hour income
Tax payable - VAT payable (output tax)
2. Receive the telex document confirmed by the manufacturer
Debit: prepayment
Credit: accounts receivable - manufacturer
What is prepayment?
Prepayments refer to payments made by an enterprise to the supplier in advance in monetary capital or currency equivalents in accordance with the provisions of the purchase contract. In daily accounting, prepayments are recorded according to the amount actually paid, such as payment for goods purchased, prepaid materials, etc.
