The merchant is not a total debt in the financial aspect of a recharge card

Belong. Merchants engaged in recharge cards are financially liabilities, and the accounting entries are:

Borrow: cash on hand or bank deposit.

Credit: Accounts received in advance.

The accounts receivable account accounts for the advance payment received by the enterprise from the purchasing unit or the unit receiving the service in accordance with the provisions of the contract or the agreement between the parties to the transaction when the goods are not shipped or the services are provided. Generally, it includes the payment received in advance and the deposit for the purchase of the goods.

Wait. At the time the enterprise receives the money, the contract for the sale of goods or services has not yet been performed, so it cannot be recorded as income, but can only be recognized as a liability, i.e. credited to the "advance receivables" account. After the enterprise provides goods or services in accordance with the provisions of the contract, it will convert the unrealized income into realized income in accordance with the performance of the contract, that is, debit the "accounts receivable in advance" account and credit the relevant income account.

Advance receivables generally have a maturity of no more than 1 year and should normally be treated as a current liability.

The balance sheet reflected at the end of each period.

If it is more than 1 year (the goods or services are provided in advance for more than one year), it is called "deferred credit" and is shown separately in the balance sheet as liabilities and owners' equity. Between.

When recharging the card: Borrow: bank deposit.

Credit: Accounts received in advance. It's a liability.

When spending: Debit: Accounts received in advance.

Credit: main business income.

Tax Payable - VAT Payable - Output Tax.

When recharging the card: Borrow: bank deposit.

Credit: Accounts received in advance. It's a liability.

When spending: Debit: Accounts received in advance.

Credit: main business income.

Tax Payable - VAT Payable - Output Tax.

When recharging the card: Borrow: bank deposit.

Credit: Accounts received in advance. It's a liability.

When spending: Debit: Accounts received in advance.

Credit: main business income.

Tax Payable - VAT Payable - Output Tax.

Total expenses refer to all expenses incurred when your company is operating, including costs, expenses, other expenses, non-operating expenses, etc.;

Income is all received by your company, including main business income, other business income, non-operating income, subsidy income, investment income, etc. ‍

Recharge cards are made into receivables, and cash is made into revenue!

Borrow: cash on hand.

Debit: Advance payments or other receivables.

Credit: main business income.

Credit: Tax Payable - VAT Payable.

The accounting balance formula can also be expressed as: Assets = Liabilities + Owners' Equity. (This is the static balance formula) The dynamic accounting balance formula is: assets + expenses = liabilities + owners' equity + income assets + liabilities What is it? That's not messed up.

Recharge to do. Borrow: Cash.

Credit: Advance receipt of Tong late accounts.

Consume. Debit: Advance this Kai receivables.

Credit: The main business closed in.