Amortization Provision Actual problems of prepayment

That's right, there must be an invoice for the expenses to be amortized, and there can be no invoice for the withholding expenses.

You should pre-withdraw (the ticket has not arrived).

Borrow: Management Fee Rent Cost 45

Credit: Withholding Expenses Rent 45

Then pay: debit: accounts payable 450,000.

Credit: Bank deposit 450,000.

And then the ticket arrived, both cases.

1. If you want to amortize (transfer the withholding expenses to the amortized expenses):

Borrow: Withholding expenses Rent 450,000.

Credit: 450,000 expenses to be amortized.

And then you amortize it every month:

Borrow: Expenses to be amortized 10,000.

Credit: Accounts payable.

2. If you don't want to borrow a stall:

Borrow: Withholding expenses Rent 450,000.

Credit: Accounts payable 450,000.

The second option is recommended. Here's an explanation, I personally think that you can not put it in the amortized expenses, because your benefit period is only 2 months, the time is too short, and the one-time management expenses will not affect the current profit and loss (your company's monthly rent is 10,000, indicating that your company is quite large, so much money, rest assured, hehe).

1. When making a payment.

Borrow: 450,000 yuan in advance accounts.

Credit: Bank deposit of 450,000 yuan.

2. When obtaining an invoice.

Borrow: Withholding expenses of 450,000 yuan.

Credit: 450,000 yuan in advance accounts.

3. In the first month.

Borrow: management expenses - lease fees of 10,000 yuan.

Credit: Borrow: Withholding expenses of 10,000 yuan.

4. In the second month.

Borrow: management expenses - lease fees of 10,000 yuan.

Credit: Borrow: Withholding expenses of 10,000 yuan.

No invoice, paid, debit: prepaid account 450,000 Credit: bank deposit 450,000.

Ticket arrival, borrow: management expenses 450,000 Credit: prepaid accounts 450,000.

If you want to amortize, you can also amortize.

The expenses to be amortized refer to the expenses that have been incurred but should be borne by the current period and subsequent periods, while the withholding expenses are the expenses that the accounting enterprise has withdrawn in advance from the costs and expenses in accordance with the regulations but have not yet paid, such as the rent withheld, insurance premiums, short-term loan interest, etc.

1.Regarding the expenses to be amortized and the expenses to be provided, you can also click to understand the accounting of the expenses to be amortized and the expenses to be provided. In accordance with the above provisions, administrative units do not use the "unit management expenses" account, and all expenses incurred in order to achieve their functional objectives and perform their duties in accordance with the law are included in the "business activity expenses" account.

Public institutions shall use the "business activity expenses" and "unit management expenses" subjects at the same time, and the expenses incurred by its business departments in carrying out professional business activities and its auxiliary activities shall be included in the "business activity expenses" account, and the expenses incurred by the administrative and logistics management departments at the same level and the expenses borne by the units shall be included in the "unit management expenses" account.

2.Is it correct to include basic expenses as "unit management costs" and project expenditures as "operating activity costs"?

The solution cannot be so simple to distinguish, it should be distinguished according to the accounting scope of "unit management expenses" and "business activity expenses" (see the previous question for the definition of scope), for example, unit property costs are project expenses, but they belong to the accounting scope of unit management expenses.

3.Does the salary of public institutions need to be divided into management personnel and business personnel to be calculated separately?

Answer: It should be distinguished, and it is recommended that the wages incurred by the various business departments that carry out professional business activities and machine-assisted activities be recorded in the "business activity expenses", and the wages incurred by the administrative and logistics management departments at the same level and the wages borne by the unit should be recorded in the "unit management expenses".

The counterparty accounts of the three accounts are related to expenses and are included in the current expenses. The difference lies in the attribution of accounting elements. Expenses to be amortized and long-term to be amortized belong to asset accounts, and the accounting unit has paid them, but the expenses that should be borne by the current period and subsequent periods respectively.

"Expenses to be apportioned" refers to the expenses with an apportionment period of less than one year (including one year), and "long-term amortized expenses" refers to the expenses with an apportionment period of more than one year.

**Accounting System

Article 4 The "business activity expenses" account accounts for the expenses incurred by the unit in order to achieve its functional objectives, perform its duties in accordance with the law or carry out professional business activities and its auxiliary activities. The "unit management expenses" account accounts for the various expenses incurred by the administrative and logistics management departments at the same level of the public institution in carrying out management activities, including personnel expenses, public funds, asset depreciation (amortization) and other expenses incurred by the administrative and logistics management departments of the unit, as well as the expenses of retirees, trade union funds, litigation fees, intermediary fees, etc., which are borne by the unit.

1. The nature of the account is different: In the classification of accounts by economic content, "expenses to be amortized" belong to asset accounts. Because it is paid first and then apportioned, it takes up the funds of the enterprise.

The debit side of the account records the increase in the assets of the enterprise, the credit side records the decrease, and the balance generally appears on the debit side, indicating the amount of assets actually owned by the enterprise at a certain point in time at the end of the period.

"Provision for expenses" is a liability account. Because it is a pre-drawn, the expense that should be paid but not yet paid becomes a liability of the business. The credit side of the account records the increase in liabilities and the debit side records the decrease, and the balance generally appears on the credit side, reflecting the actual amount of the debt incurred by the enterprise at a point in time at the end of the period.

2. The occurrence of the two expenses is inconsistent with the time of recording the benefit periodThe expenses to be amortized are incurred or paid first, and the amortized benefit period is later, that is, they are paid according to the actual amount and amortized according to the average amount in the subsequent benefit period; Withholding expenses are included in the benefit period first, and the expenses are paid later

Provision is made on an average basis during the benefit period and subsequent payments are made on an actual basis.

3. The treatment principles for filling in accounting statements are different. The expenses to be amortized belong to the amortization of expenses after they are incurred, and the specific allocation standards and distribution amounts are known in advance, and there will be no credit balance in practice, and there is no need to make adjustments when filling in the accounting statements; However, the withholding expenses need to estimate the amortization standard of the expenses to be incurred in advance, and the specific amount or standard is not known in advance, so the phenomenon of over-mention or under-mention often occurs in practice, and the debit balance is prone to occur.

At this time, there is generally no need for accounting treatment, but when filling in the accounting statements, it should be filled in as the item of "expenses to be amortized", which is treated as expenses to be amortized, which is called "inconsistent account statements" in practice.

Upstairs, although it's all nonsense, explains to you two costs. Expenses to be amortized are current assets that have been paid but have not yet been incurred; Whereas, provision is a current liability that has been incurred but not yet paid. So, the answer is that the provision is a current liability.

However, these two accounts have been removed from the new account.

Expenses to be amortized – are expenses that have already been incurred but are to be amortized over a later period.

For example, subscribing to next year's newspaper this year:

Borrow: Expenses to be amortized.

Credit: Cash (bank deposits).

At the time of amortization: borrow: administrative expenses.

Credit: Expenses to be amortized.

Provision for expenses – these are expenses that will be incurred but are amortized in the current period.

For example, borrowing money to pay interest to others:

Borrow: Finance Expenses.

Credit: Withholding expenses.

When making a payment: Debit: Withholding expenses.

Credit: Bank deposits.