Accounting For Deferred Earnings Of Small Businesses

There are three cases of accounting for deferred earnings in small businesses.

The first is a government subsidy related to an asset of a small business.

When receiving the subsidy, it should be credited to the government subsidy subject, and then each period of income will be pferred according to the period of asset amortization.

The two is

Government subsidies related to cost in the future period.

The government subsidy related to the later cost of the enterprise is recorded in the deferred income account at the time of receipt, and the income is carried out again at the time of the occurrence of the cost.

Three, it is only related to small businesses in the current period.

。

Only government subsidies related to the current period of small businesses are directly recognized as current income when they receive or confirm government subsidies. They are recorded in the revenue from outside the business - government subsidies.

Subject.

Example: Xiang Hong Company belongs to small business.

In April 1, 2014, an environmental protection treatment equipment was purchased. The VAT invoice was set at 300 thousand yuan, the value added tax was 51 thousand yuan, and the equipment installation cost was 6 thousand yuan. All the payments were made from the bank.

The equipment is not expected to be salvaged after 3 years.

Suppose that the equipment can get a one-time subsidy of 180 thousand yuan at the municipal level, and the money has arrived.

The company recruited 20 disabled people according to the state policy.

In order to compensate for the effects of the apprenticeship on the cost of the enterprise in the coming year, the financial subsidy is 120 thousand yuan.

The company is a small taxpayer.

This month, the sales revenue reached 19570 yuan, and the loan had been received and deposited in the bank. According to the notice of the Ministry of Finance and the State Administration of Taxation on the exemption of value-added tax and business tax from small and micro enterprises (fiscal and taxation [2013]52 document), the value added tax can be exempted.

Accounting treatment is as follows (unit: 10000 yuan).

Purchase of environmental protection equipment and installation:

Borrow: in construction engineering -- environmental protection equipment 30.6

Tax payable - value added tax (input tax) 5.1

Loan: bank deposit 35.7

When the equipment is delivered,

Borrowing: fixed assets -- environmental protection equipment 30.6

Loan: in construction project - environmental protection equipment 30.6

When government subsidies are received,

Borrow: bank deposit 30

Loan: deferred income - equipment related income 18

Deferred earnings - related to late costs 12

Monthly depreciation of fixed assets: 306 yuan 000/3/12=0.85 million

Borrowing: manufacturing cost depreciation expense 0.85

Loan: accumulated depreciation 0.85

When the monthly deferred income is amortized:

Equipment related gains =180 $000/3/12=0.5 million

Related to late cost related revenue =120 $000/12=1 million

Borrowing: deferred income - income related to equipment 0.5

Deferred earnings - related to late costs 1

Loan: extra business income - government subsidy income 1.5

When the company obtains sales income,

Borrow: bank deposit 1.957

Loan: main business income - sales revenue 1.9

Taxes payable - VAT payable 0.057

At the end of the month, it is confirmed and carried out duty free:

Borrowing: tax payable - value added tax 0.057

Loan: off balance revenue - government subsidy 0.057