What is included in the renovation cost of the lease?

The cost of renovating the rental house is amortized through the long-term deferred expenses.

Account accounting. Refer to the provisions of the Accounting Standard for Business Enterprises No. 21 - Lease (2018), right-of-use assets.

Refers to the right of the lessee to use the leased asset during the lease period. At the commencement date of the lease term, the lessee shall make an initial measurement of the right-of-use asset at cost. This cost includes the following four items:

1) Lease liabilities.

The initial metered amount.

2) the amount of the lease payment paid on or before the start date of the lease term; If there is a lease incentive, the relevant amount of the lease incentive that has been enjoyed shall be deducted.

3) Initial direct costs incurred by the lessee.

4) The costs expected to be incurred by the lessee to dismantle and remove the leased assets, restore the premises where the leased assets are located, or restore the leased assets to the state agreed in the lease terms. The above-mentioned costs are incurred for the production of inventory, and the Accounting Standard for Business Enterprises No. 1 - Inventory shall apply.

Accounting Standard for Business Enterprises No. 4 - Fixed Assets.

The application guide stipulates that the business is operated on an operating lease.

Improvement expenses incurred in the leased fixed assets should be capitalized as long-term amortized expenses and reasonably amortized.

Therefore, the renovation costs incurred in the leased office building are expenses for the improvement of the leased assets and cannot be included in the cost of the right-of-use assets. It can be accounted for through the "Long-term Amortized Expenses" account.

The accounting treatment of the decoration expenses of the leased house is: debit: long-term amortized expenses, credit: bank deposits and other accounts.

In the future, when amortizing on a monthly basis, the accounting treatment will be: debit: administrative expenses, manufacturing expenses, etc., and credit: long-term amortized expenses.

Simple decoration can be included in the current cost.

Borrow: management costs--- decoration costs.

Credit: Bank deposits.

Renovation expenses with larger expenses are included in long-term amortized expenses.

Borrow: long-term amortized expenses --- renovation costs.

Credit: Bank deposits.

Amortized in installments upon completion.

Borrow: management costs--- decoration costs.

Credit: long-term amortized expenses --- renovation costs.

Renovation costs are included in the management expenses or long-term amortized expenses account.

The new accounting standard abolishes the expense account to be amortized, and the expenses incurred can be directly included in the expenses of the current period. If your organization does not implement the new accounting standards, you can continue to use the amortized expense account. If the cost of office decoration is not large, it will be directly included in the "management expenses - decoration costs" account; If the amount is large, it can be credited to the "Long-term Amortized Expenses Renovation Costs" account.

Its accounting entries are as follows:

1. Simple decoration can be included in the current cost.

Borrow: management costs--- decoration costs.

Credit: Bank deposits.

2. The decoration of larger expenses shall be included in the long-term amortized expenses.

Borrow: long-term amortized expenses --- renovation costs.

Credit: Bank deposits.

Amortized in installments upon completion.

Borrow: management costs--- decoration costs.

Credit: long-term amortized expenses --- renovation costs.

1. Simple decoration can be included in the current cost.

Borrow: management costs--- decoration costs.

Credit: Bank deposits.

2. The decoration of larger expenses shall be included in the long-term amortized expenses.

Borrow: long-term amortized expenses --- renovation costs.

Credit: Bank deposits.

Amortized in installments upon completion.

Borrow: management costs--- decoration costs.

Credit: long-term amortized expenses --- renovation costs.

3. The supporting decoration of the new building, if the decoration cost is large, should belong to the fixed assets, during the construction period, make entries:

Borrow: Construction in progress.

Credit: Bank deposits.

Put into use, make entries:

Borrow: Fixed assets.

Credit: Construction in progress.

Summary. Dear, I am glad to answer the account process of the renovation fee generated by the rental house for you as follows:1

First of all, it is necessary to confirm what kind of accounting account the decoration cost belongs to, generally speaking, it should be fixed assets or other accounts payable. 2.According to the size of the decoration cost and the payment situation, choose the corresponding accounting method.

If the decoration cost is large, you can choose to pay in installments, and the actual payment amount of each installment will be recorded separately; If the decoration cost is small, you can directly record it in one lump sum. 3.For the decoration expenses of fixed assets, it is necessary to register them in the list of fixed assets, and depreciation shall be calculated in accordance with the provisions on the accounting treatment of fixed assets.

4.For other decoration expenses payable, the purpose needs to be clearly indicated on the account voucher, and recorded under the accounts payable account, and then paid when the payment is due.

Dear, I am glad to answer the account process of the renovation fee generated by the rental house for you as follows:1First of all, you need to touch your hand to confirm what kind of accounting account the decoration fee belongs to, generally speaking, it should be fixed assets or other accounts payable.

2.According to the size of the decoration cost and the payment situation, choose the corresponding accounting method. If the decoration cost is large, you can choose to pay in installments, and the actual payment amount of each installment will be recorded separately; If the decoration cost is small, you can directly record it in one lump sum.

3.For the decoration expenses of fixed assets, it is necessary to register them in the fixed assets clearing list, and accrue the depreciation in accordance with the provisions on the accounting treatment of fixed assets. 4.

For other decoration expenses payable, the purpose needs to be clearly indicated on the account voucher, and recorded under the accounts payable account, and then paid when the payment is due.

What is the expense account for the large renovation costs incurred by renting a house?

Finance Expenses. Expansion supplement: "Housing lease" is the act of giving the house owned or operated by the owner or operator of the house to the consumer of the house, and the consumer of the house has paid a certain amount of rent without missing the deadline to obtain the right to occupy and use the house.

Housing leasing is a way of commodity circulation with sporadic housing use value.

The cost of office decoration is not large, and it is directly included in the "management expenses - decoration costs" account; If the amount is large, it can be credited to the account of "long-term amortized expenses - decoration costs". Long-term amortized expenses refer to expenses incurred by an enterprise with an amortization period of more than one year.

1. Simple decoration can be included in the current cost.

Borrow: management costs--- decoration costs.

Credit: Bank deposits.

2. The decoration of larger expenses shall be included in the long-term amortized expenses.

Borrow: long-term amortized expenses --- renovation costs.

Credit: Bank deposits.

Amortized in installments upon completion.

Borrow: management costs--- decoration costs.

Credit: long-term amortized expenses --- renovation costs.

3. The supporting decoration of the new building, if the decoration cost is large, should belong to the fixed assets, during the construction period, make entries:

Borrow: Construction in progress.

Credit: Bank deposits.

Put into use, make entries:

Borrow: Fixed assets.

Credit: Construction in progress.

Long-term amortized expenses refer to expenses incurred by an enterprise with an amortization period of more than one year. Article 13 of the Enterprise Income Tax Law stipulates that the following expenses incurred by an enterprise shall be deducted if they are amortized as long-term amortized expenses in accordance with the regulations:

1. Reconstruction expenses of fixed assets for which depreciation has been fully withdrawn;

2. Reconstruction expenses of leased fixed assets;

3. Expenditure on major repairs of fixed assets;

4. Other expenses that should be regarded as long-term amortized expenses.

Differences in the fiscal and tax treatment of long-term amortized expenses:

According to the accounting regulations, long-term amortized expenses refer to the expenses that have been incurred by the enterprise but have an amortization period of more than one year (excluding one year), but the loan interest and rent that should be borne by the current period shall not be treated as long-term amortized expenses.

Long-term amortized expenses shall be accounted for separately and amortized in equal installments during the benefit period of the expense item. According to the new accounting standards, start-up costs and repair costs are included in profit or loss for the current period in a lump sum. If the expense item of long-term amortized expenses cannot benefit subsequent accounting periods, the amortized value of the item that has not been amortized shall be transferred to profit or loss for the current period.

Which account is included in the decoration cost and how is it amortized at the end of the month?

If your company's site is rented, the decoration cost should be apportioned according to the lease period, but not less than three years (because the accounting system stipulates that the long-term amortized expenses will be included in the profit and loss of the month of the start of production and operation from the month when the enterprise starts production and operation, and will no longer be amortized in installments.) It can be transferred to the "management expenses" account in a lump sum in the month of commencement of production and operation, while the tax law stipulates that the start-up expenses shall be deducted from the taxable income in equal installments within a period of not less than 3 years from the month following the commencement of production and operation. For the difference between the accounting and tax laws, the amortization accounting should be carried out in accordance with the provisions of the accounting system, but when calculating the enterprise income tax, tax adjustments should be made in accordance with the provisions of the tax law.

The follow-up measurement of fixed assets refers to the expenses incurred by enterprises in maintaining, reconstructing, expanding or improving assets in order to maintain or improve the efficiency of fixed assets, such as daily maintenance and regular overhaul of production equipment, and decoration of houses. I hope my answer is helpful to you.

Q: What accounts should be included in the decoration of fixed assets, and how should they be included in depreciation?

Reply. First, the decoration amount is not large, and it directly enters the management expenses (i.e., expense) Second, the decoration amount is large and the time is longer, and the capitalization is carried out. That is, the fixed assets are transferred to the construction in progress, and the decoration costs are also entered into the construction in progress. After the decoration is completed, it will be transferred from the construction in progress to the fixed assets, and the depreciation will continue to be accrued.

The new standard stipulates that the repair cost of fixed assets shall be credited to the management cost - repair cost, and the same shall be true for this renovation cost.

Borrow: Management Costs - Repair Costs.

Credit: Raw Materials, Cash in Stock, Bank Deposits.

If the follow-up expenses related to fixed assets of the enterprise, including the daily repair costs, major repair costs, renovation expenses of the renovation of fixed assets, and the decoration costs of houses, etc., do not meet the conditions for the recognition of fixed assets, they should be accounted for in the "management expenses" account.

Brief introduction. 1. Main material**.

The main materials of home decoration generally include floor tiles with base sources, paint, doors, cabinets and some bathroom supplies. The budget for floor tiles is generally around 8000, and of course it is also decided according to the brand chosen. The paint solid color is at least more than 2,000 yuan, the budget for the door is about 6,000-8,000 yuan, the cabinet is about 15,000 yuan, and the bathroom is about 4,000 yuan.

There are also some lamps, curtains, hardware, etc., and the purchase of these main materials is very large.

2. Auxiliary materials.

The cost of auxiliary materials for home decoration, if the area of the house is within 100 square meters, then ** is generally between 1-20,000 yuan.

The decoration cost of the leased plant is included in the long-term amortized expense account and amortized in installments during the lease period after the renovation is completed. Be careful.

Long-term amortized expenses refer to the expenses that have been incurred by the enterprise but have an amortization period of more than 1 year (excluding 1 year), including the improvement expenses of leased fixed assets, the overhaul expenses of fixed assets with an amortization period of more than 1 year, and the issuance costs. The loan interest and rent that should be borne by the current period shall not be treated as long-term amortized expenses of the auction.

The renovation cost of the leased house is calculated through the long-term amortized expense account. The accounting treatment of the cost of installation or repair of the leased house is debit: long-term amortized expenses, credit: bank deposits, etc.

In the future, when the monthly amortization is carried out, the accounting office will debit: management expenses, manufacturing expenses and other accounts, and credit: cheongsam with Wu expected amortization expenses.