How to write accounting entries for non operating income accounting?

Generally, non-operating income and expenditure are accounted for the net income or net loss of non-daily operations, and the net income from the disposal of fixed assets and intangible assets can be accounted for through this account, such as ——

Borrow: Disposal of fixed assets.

Credit: Non-operating income.

Borrow: Bank deposit.

Credit: Non-operating income.

1) Non-operating income mainly includes gains on disposal of non-current assets, gains on the exchange of non-monetary assets, gains on debt restructuring, subsidies, profits from inventory, gains from donations, etc. Enterprises should set up a "non-operating income" account, which accounts for the various non-operating income incurred by the enterprise.

2) This account can be accounted for in detail according to non-operating income items.

3) The main accounting treatment of non-operating income.

When an enterprise transfers fixed assets, it first carries forward the original value of fixed assets and the accumulated depreciation amount that has been withdrawn, debits the "fixed assets disposal" and "accumulated depreciation" accounts, and credits the "fixed assets" account; Upon receipt of the agreed price from both parties, the "bank deposit" is debited and the "fixed assets disposal" account is credited; Finally, if the transfer price is higher than the net book value of fixed assets, the "Fixed Assets Disposal" account will be debited and the "Non-operating Income" account will be credited.

When an enterprise disposes of intangible assets, it shall debit the account of "bank deposits" according to the amount actually received, debit the account of "accumulated amortization" according to the accumulated amortization that has been accrued, credit the accounts of "taxes payable" and "bank deposits" according to the relevant taxes and other expenses payable, credit the account of "intangible assets" according to its book balance, and credit the account of "non-operating income - gain on disposal of non-current assets" according to its credit difference, and if the impairment provision has been made, it should also carry forward the impairment provision at the same time.

The recognized ** subsidy gains are debited to the accounts of "bank deposits" and "deferred income", and credited to this account.

4) At the end of the period, the balance of this account should be transferred to the "Profit of the Year" account, and there is no balance in this account after the carryover.

Enterprises should account for the acquisition and carry-over of non-operating income through the "non-operating income" account. This account can be accounted for in detail according to non-operating income items.

Grant scores are asset-related grants and income-related grants. Asset-related subsidies are subsidies obtained by enterprises for the acquisition, construction or other formation of long-term assets. Asset-related ** subsidies are recognized, accounts such as "Bank Deposits" are debited, "Deferred Income" accounts are credited, and when deferred earnings are distributed, "Deferred Income" accounts are debited and this account is credited.

Income-related grants are grants other than asset-related grants. The enterprise recognizes the ** subsidy related to the income, debits the account such as "bank deposit", credits this account, or calculates the current profit and loss in installments through the "deferred income" account. Reference.

Non-operating incomeAccounting Entry Practices:

Borrow: Bank deposit.

Credit: Non-operating income.

If it is the scope of VAT payment: credit: tax payable VAT payable (output tax), small-scale tax payable VAT payable.

When income is carried forward at the end of the year (month-end):

Borrow: Non-operating income.

Credit: Profit for the year.

Distinction between other business income and non-operating income.

Other business income is daily income, which affects operating profit.

It is the income of the enterprise in addition to the main business, such as the income from the disposal of raw materials, the income from the transfer of investment housing, and investment real estate.

rental income, etc.

Non-operating income does not belong to daily income, does not affect operating profits, it belongs to current profits, affects the total profit of the current period, non-operating income includes several types: donation income, fine income, disposal of fixed assets (intangible assets.

The price exceeds the book value, and the subsidy is received.

The method of accounting for non-operating income is as follows:Borrow: bank deposits, cash, accounts receivable, etc.

Credit: Non-operating income.

Credit: Tax payable – VAT.

VAT is not paid, but business tax is paid:

Borrow: Non-operating expenses - taxes.

Credit: Taxes payable.

Taxes other than VAT are included in non-operating expenses.

If the unit does not set up other business income accounts, all the accounting contents belonging to other business income will be recorded in the non-operating income, then it is necessary to pay VAT, as follows.

If the other business income and non-operating income business are clearly separated, then there is no need to pay VAT, and only the enterprise income tax is paid in the total profit.

In the course of business activities, an enterprise will generate a certain amount of income, including main business income, other business income and non-operating income. When an enterprise recognizes non-operating income, how to write the relevant accounting entries?

Credit: Non-operating income – gain on disposal of non-current assets.

Provision for impairment of intangible assets.

Non-operating expenses – loss on disposal of non-current assets.

Credit: Taxes payable.

Bank deposits. Intangible asset.

Non-operating income – gain on disposal of non-current assets.

3. When the enterprise receives the deposit that is overdue but does not return the package, it borrows: other payables.

Credit: Tax Payable – VAT Payable (Output Tax).

Non-operating income

Credit: Non-operating income.

Credit: Non-operating income.

Credit: Other receivables.

Credit: Operating income outside of business.

7. When the enterprise returns the first subsidy, it borrows: deferred income.

Non-operating income

Credit: Bank deposits.

Other payables.

8. The enterprise writes off the payable that cannot be paid.

Debit: Accounts payable.

Credit: Non-operating income.

Borrow: Bank deposit.

Raw materials. Credit: Non-operating income.

10. At the end of the business cycle, the enterprise needs to transfer the balance in the "non-operating income" account to the "current year's profit" account

Borrow: Non-operating income.

Credit: Profit for the year.

What is Non-Operating Income?

Non-operating income refers to various gains that are not directly related to the daily business activities of an enterprise. It is a part of the financial results of the enterprise. For example, confiscation of packaging deposit income, collection of arrears of employees, fine net income, etc.

What is deferred income?

Deferred income refers to income or income that has yet to be recognized, which can also be said to be income that has not been recognized for the time being, and is the application of accrual accounting to the recognition of income. This account is a liability account, which should be accounted for in detail according to the type of subsidy. This account accounts for the amount of subsidies recognized by the enterprise according to the subsidy standard that should be included in the profit or loss of the current period in the following period.

1. Main accounting treatment of non-operating income:

1. When an enterprise transfers fixed assets, it shall first carry forward the original value of fixed assets and the accumulated depreciation amount that has been withdrawn, debit the "fixed assets liquidation", balance and bury the "accumulated depreciation" account, and credit the "fixed assets" account;

2. After receiving the agreed price from both parties, the "bank deposit" will be debited and the "fixed assets liquidation" account will be credited; If the transfer price is higher than the net book value of fixed assets, the "Fixed Assets Disposal" account will be debited and the "Non-operating Income" account will be credited.

3. When an enterprise disposes of intangible assets, it shall credit the account of "non-operating income - gain on disposal of non-current assets" according to the amount actually received, etc., according to the relevant taxes and other expenses payable, and if the impairment provision has been made, the impairment provision shall also be carried forward at the same time.

4. The recognized ** subsidy gains shall be debited to the accounts of "bank deposits" and "deferred income", and credited to this account.

5. At the end of the period, the balance of this account should be transferred to the "Profit of the Year" account, and there is no balance in this account after the carryover.

Non-operating income refers to income that is not directly related to the production and operation process and should be included in the current profit. It is a part of the company's financial results. For example, confiscation of packaging deposit income, collection of arrears of employees, fines and so on.

The debit side of non-operating income represents the amount of decrease or carry-forward, and the credit side represents the amount of increase. At the end of the period, this account needs to be transferred to the profit account of the current year, and there is no balance at the end of the period. Its distribution is recorded as silver, borrowed:

Cash, etc., credit: non-operating income - xx income.

At the end of the month, the entries are, debit: non-operating income - xx income, credit: profit in goods for the current year.