Accounting treatment of precious metals
1. When enterprises purchase precious metals:
Debit: Precious metal
Credit: deposit in the central bank
2. When selling precious metals:
Debit: Deposits with the Central Bank
Credit: other business income
Debit: other business costs
Credit: Precious metals
The purchase of precious metals by financial enterprises should be accounted for through such subjects as "deposits with the central bank". For the sale of precious metals, the amount actually received should be debited into the "deposits with the Central Bank" and other accounts, and credited into the "other business income" account. And according to the book balance, debit the "other business costs" title and credit the "precious metals" title.
"Precious metals" belongs to the asset category, accounting for the cost of gold, silver and other precious metal inventories held by financial enterprises. Enterprises can conduct detailed accounting according to the category of precious metals.