How to make entries for asset inventory loss accounting

The inventory that has lost inventory shall be included in the management expenses of the current period after deducting the compensation and residual material value of the negligent party or the insurance company, and if it is an extraordinary loss, it shall be included in the non-operating expenses.

Pre-Approval: Borrow: Pending Property Losses and Losses Pending Disposal of Current Assets Losses and Surpluses.

Credit: raw materials.

Inventory items, etc.

Inventory loss caused by abnormal loss of purchased inventory:

Borrow: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

Credit: raw materials, etc.

Tax Payable VAT Payable (Input Tax Transfer) After approval:

For the inventory loss, it should be dealt with according to the reasons for the loss

1. It belongs to the loss within the quota and the error in the measurement of daily inventory sending and receiving.

Post-Approval: Borrow: Management Fee.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

2. It is a loss that should be compensated by the negligent party.

Debit: Other receivables.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

3. Inventory loss due to irresistible reasons such as natural disasters:

Borrow: Non-operating expenses Very loss.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

When the cash inventory is in the red:

Pre-Approval: Borrow: Pending Property Losses and Losses Pending Disposal of Current Assets Losses and Surpluses.

Credit: cash on hand.

After approval, the reason was not ascertained:

Borrow: Administrative expenses.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

When the fixed assets are in deficit:

Pre-Approval: Borrow: Pending Property Loss and Excess - Pending Fixed Asset Loss and Surplus.

Accumulated depreciation. Credit: Fixed Assets.

After approval: borrow: non-operating expenses - inventory loss of fixed assets.

Credit: Pending Property Loss and Excess - Pending Disposal of Fixed Asset Loss and Surplus.

Before approving the reason for the loss, debit the property loss and excess to be disposed of, credit the corresponding asset account, and record the accumulated depreciation of fixed assets if the depreciation is debited. After approval, cash inventory loss: debit administrative expenses (the cause cannot be identified) Other receivables (mismanaged, responsible) Non-operating expenses (force majeure), credit to the property loss and excess to be disposed of.

When inventory is in deficit: Other receivables are debited Administrative expenses Non-operating expenses are credited to the property loss and excess to be disposed of.

Inventory loss of fixed assets: debit other receivables (mismanagement) Non-operating expenses, credit to property losses and overages to be disposed of.

I don't know how to ask.

The specific entries of the profit and loss of the inventory need to be confirmed according to the actual situation, for example, 1. The following entries are made when the inventory is profitable, after the profit, but before the enterprise is disposed of before the disposition is approved, the entries are hidden, borrowing: inventory goods, etc., and crediting: property loss and excess to be disposed of.

The profit and loss of current assets to be disposed of shall be made as follows after approval, debit: loss and loss of property to be disposed of - profit or loss of current assets to be disposed of, credit: management expenses.

2. When the inventory is in deficit:

Pre-Approval: Loan: Pending Property Losses and Losses - Pending Gains and Losses on Current Assets, Credit: Raw Materials, etc., Post-Approval:

1) Inventory losses caused by poor management and other reasons such as sending and receiving measurements shall be included in management expenses.

2) Inventory losses caused by natural disasters and other abnormal reasons are included in non-operating expenses.

3) The compensation of the person responsible for the receivable and the insurance company shall be included in other receivables.

Debit: Administrative expenses, non-operating expenses, other receivables, credit: property loss and excess to be disposed of - profit or loss of assets to be disposed of, cash inventory accounting entries:

Before Approval:

Borrow: Loss and excess of property to be disposed of, Credit: cash in hand, after approval:

Debit: other receivables (the part that should be compensated by the responsible person or the insurance company), management expenses (the reason cannot be ascertained) (affecting operating profits), credit: property losses and surpasses to be disposed of, cash surplus (actual deposits), related accounting entries:

Before Approval:

Borrow: cash in hand, credit: property loss and surplus to be disposed of, after approval:

Borrow: Loss and excess of property to be disposed of, Credit: Other payables.

shall be paid to the relevant person or unit), non-operating income.

If the cause cannot be ascertained) (it will not affect the operating profit).

Inventory loss is a property inventory result obtained by an enterprise after a property inventory.

Property inventory refers to a special method for determining the actual number of accounts and whether the number of accounts is consistent with the actual number of accounts through the inventory or verification of monetary funds, physical assets and current accounts. Inventory loss refers to the part of the financial items that are found to be less than the actual amount.

It is divided into 3 cases in total

1. Shortage of cash.

1) Before finding out the cause.

Borrow: Pending Property Gains and Losses – Gains and losses on current assets to be disposed of.

Credit: cash on hand.

2) After approval.

Debit: Other receivables (the part of the compensation for the liable person).

Administrative costs (part of the reason for which the cause could not be identified).

Credit: Profit or loss on property to be disposed of – Profit or loss on current assets to be disposed of.

2. Inventory damage and shortage.

1) Before finding out the cause.

Borrow: Pending Property Gains and Losses – Gains and losses on current assets to be disposed of.

Credit: Raw Materials Inventory Goods.

2) After finding out the cause.

Debit: Other receivables (the part of the compensation for the liable person).

Management expenses (mismanagement).

Non-operating expenses (abnormal losses, natural and man-made disasters).

Credit: Profit or loss on property to be disposed of – Profit or loss on current assets to be disposed of.

3. Inventory loss of fixed assets.

1) Before approval, the original value and accumulated depreciation of the assets shall be written off.

Borrow: Profit or loss on property to be disposed of.

Accumulated depreciation. Credit: Fixed Assets.

2) After approval.

Borrow: Non-Operating Expenses - Profit and loss of fixed assets.

Other receivables (the part of the compensation for the liable person).

Credit: Pending Property Gains and Losses.

1. The entries of various materials and inventory commodities that are lost or damaged are debited as follows: loss and overflow of property to be disposed of.

Accumulated depreciation. Credit: Raw Materials Inventory Goods.

Fixed asset. Tax Payable – VAT payable (input tax transferred out).

2. In case of loss or damage of assets, the value of the residual materials, the recoverable insurance compensation and the compensation of the negligent person shall be deducted as follows.

Borrow: raw materials.

Other receivables.

Credit: Pending property loss and overflow.

The remaining net loss is the part of abnormal loss.

Borrow: non-operating expenses - inventory loss, scrap damage loss.

Credit: Pending property loss and overflow.

It is a general operating loss.

Borrow: Administrative expenses.

Credit: Pending property loss and overflow.

Accounting entries for 2:

Credit: Fixed Assets.

Borrow: Non-operating expenses.

The transfer is carried forward to the profit and loss account, 1, 2

It's all carried over.

Borrow: Profit or loss on property to be disposed of.

Goods: Fixed assets.

Borrow: Non-operating expenses.

Accumulated depreciation. Goods: Profit or loss on property to be disposed of.

1. Inventory loss, damaged materials, inventory goods, etc.

Borrow: Loss or overflow of property to be disposed of.

Accumulated depreciation. Credit: Raw Materials Inventory Goods.

Fixed asset. Tax Payable – VAT payable (input tax transferred out).

2. If the assets are lost or damaged, the value of the residual materials, the recoverable insurance compensation and the compensation of the negligent person shall be deducted first.

Borrow: raw materials.

Other receivables.

Credit: Pending property loss and overflow.

The remaining net loss is the part of abnormal loss.

Borrow: non-operating expenses - inventory loss, scrap damage loss.

Credit: Pending property loss and overflow.

It is a general operating loss.

Borrow: Administrative expenses.

Credit: Pending property loss and overflow.

1. Before approval, the profit deposit and loan.

Borrow: Raw materials (or goods in stock).

Credit: Pending property loss and overflow.

2. Profit fixed assets.

Borrow: Fixed assets.

Credit: Accumulated depreciation.

Pending property loss and overflow.

3. Deposit and loan at a loss.

Borrow: Loss or overflow of property to be disposed of.

Credit: Raw materials (or goods in stock).

4. Inventory loss of fixed assets.

Borrow: Accumulated depreciation.

Pending property loss and overflow.

Credit: Fixed Assets.

b) After approval.

1. Handling of inventory profits.

Borrow: Loss or overflow of property to be disposed of.

Credit: Administrative expenses.

2. Handling of fixed assets.

Borrow: Loss or overflow of property to be disposed of.

Credit: Non-operating income.

3. Handling of inventory loss.

Borrow: Administrative expenses.

reasonable attrition within the quota).

Other receivables - xx

Indemnification of the person responsible).

Non-operating expenses.

natural disasters, extraordinary losses).

Credit: Pending property loss and overflow.

4. Handling of inventory loss fixed assets.

Borrow: Non-operating expenses.

Credit: Pending property loss and overflow.

Accounting treatment of inventory loss:

If the inventory loss is verified to be true, then:

Borrow: Profit or loss on property to be disposed of.

Credit: Inventory of goods.

After the approval of the person in charge of the unit, when the write-off is approved:

Depending on the reasons for the inventory loss, it is credited to different profit and loss accounts: other receivables (when the inventory reduction is artificially caused and the person in charge bears the loss), management expenses (reasonable losses caused by improper management and preservation), non-operating expenses (referring to inventory caused by natural wear and tear or irresistible factors such as fire, etc.), credit: profit or loss of property to be disposed of.

The above debit account selects an accounting item based on the reason for the loss.

1. The accounting entries of the fixed assets are as follows:

Determine the original value, accumulated depreciation and net fixed asset value of the fixed asset.

Borrow: Fixed assets.

Credit: Accumulated depreciation.

Prior Year Profit and Loss Adjustments.

Calculate the income tax payable.

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable - Income Tax Payable.

Profit and loss adjustments for prior years are carried forward.

Debit: Profit and loss adjustments for prior years.

Credit: Profit distribution – undistributed profit.

2. Accounting treatment of fixed asset inventory loss.

Before Approval:

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Accumulated depreciation. Provision for impairment of fixed assets.

Credit: Fixed Assets.

After the report is approved:

There is an accounting treatment for recoverable insurance claims or wrongdoers' compensation.

Debit: Other receivables.

Credit: Pending Property Loss and Excess - Pending Disposal of Fixed Asset Loss and Surplus.

Accounting treatment of amounts that should be included in non-operating expenses.

Borrow: Non-operating expenses - inventory loss.

Credit: Pending Property Loss and Excess - Pending Disposal of Fixed Asset Loss and Surplus.

The enterprise will regularly take stock of the fixed assets under its name, and the inventory of fixed assets may have a profit or a loss, so how should the accountant prepare accounting entries for the inventory loss of fixed assets?

1. Before approval:

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Accumulated depreciation. Provision for impairment of fixed assets.

Credit: Fixed Assets.

2) After approval.

Recoverable Insurance Compensation or Fault Compensation:

Debit: Other receivables.

Credit: Pending Property Loss and Excess - Pending Disposal of Fixed Asset Loss and Surplus.

By the amount that should be included in non-operating expenses:

Borrow: Non-operating expenses - inventory loss.

Credit: Pending Property Loss and Excess - Pending Disposal of Fixed Asset Loss and Surplus.

What is a pending property loss?

The loss and excess of property to be disposed of is mainly to calculate the value of various property gains, losses and damages identified by the enterprise in the process of property inventory. The abnormal shortage and loss of materials in transportation are also accounted for through this account. If an enterprise has fixed assets with a profit, it should be recorded as an error in the previous period in the account of "profit and loss adjustment of previous years".

This account can be accounted for in detail according to the types of assets and items of profit and loss.

The main accounting treatment of the property loss and overflow to be disposed of is the auction

1. All kinds of materials, finished products, commodities, biological assets, etc., which are profitable, shall be debited to the accounts of "raw materials", "inventory commodities", "consumable biological assets", etc., and credited to this account. The fixed assets of various materials, finished products, commodities, and assets of the Birth Hall that are lost or damaged shall be debited to this account and credited to the accounts of "raw materials", "inventory goods", "consumable biological assets", "fixed assets", etc. If materials, finished products, and commodities are accounted for by the planned cost (selling price), the cost difference (commodity purchase and sale price difference) should also be carried forward at the same time.

If VAT is involved, it should also be dealt with accordingly.

2. When the assets are disposed of after being approved by the management authority, the accounts such as "raw materials" shall be debited according to the value of the residual materials, the accounts of "other receivables" shall be debited according to the recoverable insurance compensation or compensation of the negligent person, the balance of the account shall be credited to this account, and the accounts of "management expenses" and "non-operating expenses" shall be debited according to the debit difference. Other assets other than fixed assets shall be debited to this account and credited to "management expenses", "non-operating income" and other accounts.

3. The cause of the property loss and overflow of the enterprise should be ascertained and dealt with before the end of the period, and there should be no balance in this account after the processing.

At the end of the month or at the end of the period, the enterprise needs to take inventory of fixed assets, and when there is a profit or loss, it is generally set up to account for the profit and loss adjustment of the previous year, how to do the relevant accounting entries?

Accounting entries for profit and loss of fixed assets.

1. Accounting entries for fixed assets.

Borrow: fixed capital Hu Ju property.

Credit: Prior Year Profit and Loss Adjustment.

Debit: Profit and loss adjustments for prior years.

Credit: Surplus Reserve.

Profit distribution – undistributed profits.

The profit distribution account is an equity account, with the debit side indicating a decrease in the trillion side and the credit side indicating an increase. If you see the debit amount, it means that the company has made a profit distribution. If you see a credit amount, it generally represents the profit of the year that is carried forward.

Regardless of whether the profit for the fiscal year is positive or negative, the entries should be carried forward to the credit of the undistributed profit account.

2. Accounting entries for inventory loss of fixed assets:

Borrow: Loss or overflow of property to be disposed of.

Provision for impairment of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

Borrow: Non-operating expenses.

Other receivables (compensation that can be obtained from the responsible person or the insurance company).

Credit: Pending property loss and overflow.

What is the prior year profit and loss adjustment?

Prior years' profit and loss adjustments are profit and loss accounts that are used to account for the adjustments made by an enterprise to the amount of material profits and losses that have been overstated or understated in previous years. The account is credited with an increase in the income of the previous year for which the enterprise is adjusted; The debit is debited to the decrease, and the income loss of the previous year is registered as adjusted by the enterprise; The closing balance is carried forward to the current year's profit account, and there is no balance after the carry-forward.

What is a pending property loss?

This account is used to account for the profit, loss and damage of various property and materials that have been identified in the process of property inventory of the enterprise. "Property loss and excess to be disposed of" belongs to the asset class account, the debit is increased, the credit is decreased, there is generally no balance at the end of the period, and the balance is generally entered into the current profit and loss account when carried forward. It has two accounting bases:

Inventory profit, loss and damage of various assets and approval documents, various current assets report pants and scrap list and approval documents.