What are the accounting contents of accounts payable
For junior accounting examinees, it is very important that the relevant knowledge points of accounts payable are the regular examination points. Accounts payable refer to the amount that should be paid to the seller. What are the accounting contents? How to write accounting entries?
Accounts payable accounting content
Accounts payable refer to the amount payable by an enterprise for its business activities such as purchasing materials, commodities or accepting labor supply. Accounts payable include: purchase price of goods, VAT input tax, and prepaid expenses of the seller.
If cash discount is attached to accounts payable, it shall be recorded as the total amount of accounts payable before deducting the cash discount. The cash discount obtained from payment within the discount period shall offset financial expenses when repaying accounts payable. If trade discounts are attached to accounts payable, the total amount of accounts payable after deducting trade discounts shall be recorded.
Accounting entries of accounts payable
Accounts payable when purchasing goods
Debit: raw materials, material procurement, etc
Tax payable - VAT payable (input tax)
Credit: Accounts payable (excluding commercial discount, not cash discount)
At the time of repayment:
Debit: accounts payable
Credit: bank deposit
? ? ? ? Notes payable (commercial bills issued for offset)
When repaying accounts payable with cash discount conditions:
Debit: accounts payable
Credit: bank deposit (actual repayment amount)
? ? ? Financial expenses (cash discount actually enjoyed)
When it is really unable to pay or does not need to pay:
Debit: accounts payable
Credit: non operating income
In practice, the power purchased by enterprises such as electricity and gas is generally accounted through the "accounts payable" account, that is, the temporary payment is made when the monthly payment is made:
Debit: raw materials, material procurement, etc
Tax payable - VAT payable (input tax)
Credit: bank deposit, etc
Distribution by purpose at the end of the month:
Debit: production cost
Manufacturing expenses
Administrative expenses, etc
Credit: Accounts payable
If there is a debit balance in accounts payable, it means "prepayment".
How to make accounts when accounts payable cannot be paid?
According to the Accounting Standards for Business Enterprises, the inflow of economic benefits arising from non routine activities of an enterprise should be treated as "gains", which include "capital reserve" and "non operating income".
Non operating income refers to various gains that are not directly related to daily activities. It mainly includes income from disposal of non current assets, inventory profit, confiscation, donation, and payables that can not be paid but are converted into non operating income after net approval according to the prescribed procedures.
Therefore, after the enterprise obtains the relevant evidence that the payment can not be made, it should be treated as "non operating income".
Debit: accounts payable
Credit: non operating income