Whether a sole proprietorship needs to set up a ledger for accounting

Yes, a ledger needs to be set up. Sole proprietorship enterprises set up account books to facilitate understanding of the business situation, and when the scale is small and the fixed amount tax is paid, it can actually keep the accounts without filing tax declarations; To form a scale or become a general taxpayer, the requirements for setting up the account book are more complete, but it is not easy to actually keep accounts, which is a form of so-called "reasonable tax avoidance". China's relevant laws and regulations stipulate that a sole proprietorship enterprise shall set up accounting books and conduct accounting in accordance with the law.

All units must carry out accounting according to the actual economic and business matters, fill in accounting vouchers, register accounting books, and prepare financial accounting reports. No unit may conduct accounting with false economic and business matters or materials.

Extended information: 1. Sole proprietorship enterprise, referred to as sole proprietorship, refers to a for-profit economic organization invested by a natural person and all assets owned by the investor. Sole proprietorship is a very old form of business, which is still widely used in business operations, and its typical characteristics are individual capital contribution and individual operation. Individuals are responsible for their own profits and losses and bear their own risks.

The Law on Sole Proprietorship Enterprises was adopted and promulgated at the 11th Session of the Standing Committee of the Ninth National People's Congress on 30 August 1999 and came into force on 1 January 2000. There are 6 chapters and 48 articles. The concept of a sole proprietorship under Section 2 of the Act is:

For the purposes of this Law, the term "sole proprietorship enterprise" refers to a business entity established within the territory of China in accordance with this Law, invested by a natural person, whose property is owned by the investor, and whose personal property bears unlimited liability for the debts of the enterprise.

2. The ledger is composed of a certain format and a number of account pages, and is based on accounting vouchers to classify and record all economic operations in a timely manner, which is commonly referred to as an account book. The registration of the ledger is serious, meticulous, and the writing requirements are high, and the writing tools should be written in accordance with the regular script with a professional accounting pen, and the accounting errors should be corrected in accordance with the prescribed methods. Every business or company has a necessary ledger.

The ledger includes cashier's account, cash journal, bank deposit journal, inventory journal, purchase, sale and inventory journal (except business), operating expense ledger, general ledger, management expense ledger, receivable ledger, fixed assets ledger, 17-column ledger, intangible assets ledger and paid-in capital ledger. Short-term investment ledger, low-value consumables ledger.

A sole proprietorship is also required to set up complete financial books for accounting.

Legal Analysis: Sole proprietorship needs to keep accounts. Sole proprietorship enterprises need to set up accounting books and conduct accounting in accordance with the law.

A sole proprietorship is not an independent legal person and does not need to pay corporate income tax. However, the profits of the enterprise are ultimately subject to personal income tax together with the other income of the business owner. A sole proprietorship generally refers to a business entity established in China for investment by a natural person, the property is owned by the investor, and the investor bears unlimited liability for the debts of the enterprise with his personal property.

A sole proprietorship needs to make accounts according to the situation of the business. For example, the accounting treatment of realized income is, debit: accounts receivable and other accounts, credit:

Income from principal business, tax payable - VAT payable (output tax). Sole proprietorship does not have strict requirements for bookkeeping. Sole proprietorship is subject to personal income tax in terms of income tax and is the same as other domestic enterprises in terms of other taxes.

For small sole proprietorship enterprises, it is difficult to calculate the tax payable due to the weak general accounting work. Therefore, proceeding from the principle of strengthening tax collection and management, the tax authorities have simplified the collection method and adopted the methods of verification and collection, or fixed amount and regular collection.

Legal basis: "Law of the People's Republic of China on Sole Proprietorship Enterprises" Article 2 The term "sole proprietorship enterprise" as used in this Law refers to a business entity established in China in accordance with this Law, invested by a natural person, whose property is owned by the investor, and whose personal property bears unlimited liability for the debts of the enterprise.

Sole proprietorship has to do the accounting. Profits from a sole proprietorship are ultimately subject to personal income tax along with the other income of the business owner. A sole proprietorship enterprise refers to a business entity established in China in accordance with this Law, invested by a natural person, whose property is owned by the investor, and whose personal property bears unlimited liability for the debts of the enterprise.

[Legal basis].Paragraph 1 of Article 2 of the Individual Income Tax Law of the People's Republic of China.

Individual income tax shall be paid on the following personal income:

1) Income from wages and salaries;

2) Income from remuneration for labor services;

3) Income from author's remuneration;

4) Income from royalties;

5) Business income;

6) Income from interest, dividends and bonuses;

7) Income from property lease;

8) Income from the transfer of property;

9) Incidental gains.

1. Sole proprietorship enterprises should establish accounts, and sole proprietorship enterprises are not independent legal persons and do not need to pay enterprise income tax, but the profits of the enterprise must eventually be paid together with other income of the enterprise owner. However, if the income of the company's employees exceeds a certain amount and needs to pay individual income tax, the enterprise is a statutory withholding agent and needs to withhold income tax from the employee's salary and pay income tax on behalf of the employee.

2. Such enterprises can refer to the provisions of the "Accounting System for Business Enterprises" or the "Accounting System for Small Enterprises" for accounting treatment.

1) Set up the "Owner's Investment" account to calculate the amount of investment invested by the owner. When the investment is received, the account such as cash or bank deposit is debited and this account is credited, and when the investment is recovered, this account is debited and the account such as cash or bank deposit is credited.

2) Set up the "Owner Transactions" account to account for the capital transactions and receivables and payables between the owners and the enterprise except for the investment in the Boshan Hall.

At the end of the year, all the balance of this account will be transferred to the "Owner Investment" account, and after the carryover, there should be no balance in this account.

3) Set up the "profit and loss summary" account to account for the profit and loss realized by the enterprise. At the end of the period, the enterprise shall transfer all the balances of profit and loss accounts to this account. At the end of the year, all the balance of this account will be transferred to the "Owner Investment" account, and after the carryover, there should be no balance in this account.

1. What is the loss or overflow of property to be disposed of?

The pending property loss and excess account is actually an asset class account (No. 1901). But it corresponds to the asset class account must be in line with the debit increase, credit only judgment record decrease, the property loss and excess account to be disposed of is a bit similar to the fixed assets disposal account, are transitional accounts, generally there is no balance at the end of the period, its balance has entered the current profit and loss account, and into the profit and loss account, the lending rules are just the opposite, the credit is the increase in income (or the decrease in costs), the debit is the increase in expenses, such as the current assets profit is to offset the management expenses.

Compared with ordinary companies, sole proprietorship enterprises are only different in the organizational form of the company, which is exactly the same as the accounting accounting, and it is also necessary to account for accounting, starting from the paid-in capital, and then purchasing fixed assets, organizing production, purchasing raw materials for production, and then selling settlement costs, in addition to some accounting documents for current expenses.

Legal Analysis: Accounting is to be done. A sole proprietorship is not an independent legal person and does not need to pay corporate income tax, but the profits of the enterprise must ultimately be subject to individual income tax along with the other income of the business owner.

However, if the income of the employees of the enterprise exceeds a certain amount and needs to pay individual income tax, the enterprise is the statutory withholding agent, and needs to withhold the income tax from the employee's salary and pay the income tax on behalf of the employee.

Legal basis: "Measures for the Administration of the Registration of Sole Proprietorship Enterprises" Article 2 The establishment, alteration and cancellation of sole proprietorship enterprises shall be registered in accordance with the Law on Individuals with Sole Discretionary Enterprises and the provisions of these Measures.