How to make up the provision for inventory decline?

Because the cost and the net realizable value are compared according to the single inventory, so at the end of the period, you can make up or transfer back the inventory decline provision according to each inventory variety, for inventory A, by December 31, 2008, the inventory decline provision that should be accrued is 10-8 = 20,000 yuan, because 10,000 yuan has been provided before, so 10,000 yuan can be accrued, borrowing: asset impairment loss - provision for inventory decline 1

Credit: Provision for decline in value of inventories 1

For B's inventory because it was 120,000 yuan and 150,000 yuan on December 31, 2008, there is no need to make provision for inventory price decline, and the previous provision for inventory price decline must be reversed, so B should be entrant.

Borrow: Provision for decline in value of inventories 2

Credit: Asset Impairment Loss - Provision for Inventory Decline 2

For C, because on December 31, 2008, 180,000 yuan and 150,000 yuan, 30,000 yuan should be accrued for inventory price decline, because 10,000 yuan was previously accrued, so 10,000 yuan was being withdrawn.

Borrow: Asset impairment loss - provision for inventory decline.

Credit: Provision for decline in value of inventories.

The "Provision for Decline in Inventory Value" account is used to account for the provision for decline in value that is recognized or reversed by the enterprise.

At each balance sheet date, the enterprise should compare the cost of inventory with the net realizable value to calculate the accrued provision for inventory decline, and then compare it with the amount already drawn, and if the amount to be provided is greater than the amount already made, it should make up the provision. The provision for inventory decline accrued by the enterprise should be included in the profit or loss (asset impairment loss) for the current period.

Borrow: Asset impairment loss.

Credit: Provision for decline in value of inventories.

In the question, the carrying value of inventory A and inventory C is less than their net realizable value, -8=2, and the impairment of inventory A is 20,000 yuan, because it has already accrued 10,000 yuan, so it needs to make up 10,000 yuan.

Borrow: Asset impairment loss of 10,000

Credit: Provision for decline in value of inventories 10,000

2, 18-15=3 C inventory is impaired by 30,000 yuan, and it has been provided for 10,000 yuan, so it should be supplemented with 10,000 yuan.

When the influencing factors of the previous write-down of the value of inventories have disappeared, the amount of the write-down should be restored and reversed within the amount of the original provision for inventory decline, and the reversed amount shall be included in the profit or loss (asset impairment loss) for the current period.

Borrow: Provision for decline in value of inventories.

Credit: Asset impairment loss.

The impairment provision of $20,000 had been made for B's inventory on the grounds that the net realizable value was lower than its carrying amount at that time, and now, the net realizable value of B's inventory was $150,000, which exceeded its cost of $120,000, and the original factor of the impairment provision had disappeared, so the provision should be reversed within the scope of the original provision of $20,000.

Borrow: Provision for decline in value of inventories 20,000

Credit: asset impairment loss 20,000

Provision for decline in value of inventories should normally be made on the basis of a single inventory item. However, for a large number of inventories with a low unit price, a provision for inventory decline can be made according to the inventory category. Inventories related to product lines manufactured and sold in the same region, with the same or similar end use or purpose, and difficult to measure separately from other items, can be combined to make provision for inventory decline.

The three kinds of inventories of A, B and C shall be separately recognized as a provision for price decline, and shall also be separately provided for price decline, recorded in detail in the reference book, and shall be transferred back to the original provision for price decline when the product of A, B and C is **.

Borrow: Cost of main business.

Provision for decline in inventory value.

Credit: Inventory of goods.

Provision for decline in value of inventory: At the balance sheet date, inventory should be measured at the lower of cost and net realizable value. If the cost of inventory is higher than its net realizable value, a provision shall be made for the decline in the value of inventory.

Net realizable value is determined on the basis of the estimated selling price minus the cost of further processing and taxes on sales. If the inventory does not require processing and direct sale, the net realizable value is determined by subtracting taxes on the sale from the estimated selling price. If the cost is higher than the net realizable value, the impairment is accrued:

The Asset Impairment Loss - Provision for Inventory Decline in Value account is debited and the Provision for Inventory Decline in Value account is credited. If the net realizable value of inventories recovers, the original provision should be reversed, but the amount of the reversal should be limited to the original provision for price decline.

The reversal of the provision for inventory decline means that if the influencing factors of the previous write-down of the value of the inventory have disappeared, the amount of the write-down shall be restored and reversed within the amount of the original provision for the decline in the value of inventory, and the amount reversed shall be included in the profit or loss for the current period.

Accounting entries carried forward for inventory decline provision: debit: inventory decline provision; Credit:

cost of principal business; When carrying forward, Bi Jian Hunger needs to be calculated according to the proportion. For inventories transferred due to debt restructuring and non-monetary asset exchanges, the provision for inventory decline that has been made should also be carried forward. If the provision for inventory decline is made according to the inventory category, the corresponding inventory decline provision shall be carried forward according to the proportion of the cost of the inventory transferred out of the inventory in the event of sales, debt restructuring, non-monetary asset exchange, etc., to the cost of the inventory of the category before the inventory is transferred out.

Supplementary information: Provision for inventory decline refers to the part of the inventory cost that cannot be recovered due to the damage of the inventory, the obsolescence of all or part of the inventory, or the fact that the sales** are lower than the cost at the end of the interim period or at the end of the year, and the difference between the cost of a single inventory item and its variable net value is withdrawn and included in the inventory decline loss. It is an accounting treatment that is adopted when the realizable value of inventory is lower than the original cost.

Specific operation: On the balance sheet date, if the net realizable value of inventory is lower than the cost, the enterprise should make provision for inventory decline. Enterprises should generally make provision for inventory decline based on a single inventory item.

That is, at the balance sheet date, the company compares the cost of each inventory item with its net realizable value one by one, and measures the inventory at the lower level. If the net realizable value is lower than the cost, the difference between the two is the accrued provision for inventory decline. The provision for inventory decline accrued by the enterprise shall be included in the profit or loss for the current period.

For a large number of inventories with a low unit price, a provision for inventory decline can be made according to the inventory category. Inventories related to product lines manufactured and sold in the same region, with the same or similar end use or purpose, and difficult to measure separately from other items, can be combined to make provision for inventory decline. Inventories have the same or similar end-use or purpose, and are produced and sold in the same region, which means that the economic, legal, and market environment in which the inventory is located is the same, and has the same risks and rewards, so it can be combined to make provision for inventory decline.

According to the provisions of the accounting system, the enterprise should be set up"Provision for decline in inventory value. "Account, accounting for inventory depreciation provisions. The lender registers the provision for inventory decline, and the borrower registers the amount of inventory decline loss actually incurred and the amount of inventory decline allowance that has been written off, and the end of the period is generally on the credit side, reflecting the provision for inventory decline that the enterprise has accrued but has not yet been resold.

1. When the inventory is higher than its net realizable value, the enterprise shall calculate the difference between the net realizable value of the inventory and the cost.

Borrow: asset impairment loss - provision for inventory decline, credit: provision for inventory decline, 2. When the provision for inventory decline is reversed, the amount increased by the recovery.

Borrow: Provision for Decline in Inventory Value, Credit: Impairment Loss of Assets - Provision for Decline in Inventory Value, 3. When the enterprise carries forward the cost of sales of inventory, it has made provision for decline in the value of inventory.

Borrowing and Losing Quietly: Provision for Inventory Price Decline, Credit: Cost of Main Business (Other Business Costs) and other accounts.

General:

Borrow: Asset impairment loss of 10,000

Credit: Provision for decline in value of inventories 10,000

Future Period: Borrow: 10,000 profit or loss adjustment for previous years

Credit: Provision for decline in value of inventories 10,000

The provision for inventory decline does not affect the income tax, and the permanent difference does not adjust the income tax expense: surplus reserve 1000

Profit distribution - undistributed profit 9000

Credit: Prior Year Profit and Loss Adjustment.

If there is any error, please correct it!

He considered the comprehensive provision for inventory impairment.

If you want to use entries.

There is a need for reversal, and there is also a supplement.

The difference between the reversal and the catch-up is.