Affected by the new pneumonia epidemic, catering enterprises usually sell or scrap their stocks at low prices to avoid the expiration or deterioration of ingredients and reduce losses. So how to deal with the accounting of inventory loss of catering enterprises during the epidemic? How to make accounting entries? Come and learn about it with Deep Space Network!

Accounting treatment of inventory loss in catering enterprises during epidemic period

When selling at a low price, the accounting entries are as follows:

Borrow: bank deposit or cash on hand.

Loan: income from main (other) business.

Taxes payable-VAT payable (output tax)

Debit: main (other) business cost

Loans: raw materials, goods in stock, etc.

When scrapped, the accounting entries are as follows:

Borrow: non-operating expenses

Loans: raw materials and goods in stock.

How to deal with the accounting of food deterioration in catering enterprises during the epidemic?

1. Carry out accounting treatment before scrapping approval:

Debit: the profit and loss of the property to be processed.

Loan: raw materials

2. Submit it to the relevant personnel for approval, and carry it forward to the corresponding account according to the approval:

Borrow: non-operating expenses

Loan: profit and loss of pending property

Answers to common questions on fiscal and taxation treatment of enterprise inventory loss during epidemic period.

1, catering enterprises, affected by the epidemic, canceled some banquets booked years ago, and the purchased ingredients deteriorated because they could not be sold. Can it be deducted as a loss before enterprise income tax?

A: The ingredients here belong to the inventory of catering enterprises. If it deteriorates, it can be obtained according to relevant regulations and deducted as a loss before enterprise income tax.

Reference: People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Bulletin No.2011No.25.

2. A catering enterprise purchased ingredients years ago, but due to the epidemic, the restaurant closed down and some of the purchased ingredients deteriorated. Do I need to transfer out the input tax?

A: According to the relevant regulations, the deterioration and loss of ingredients due to the epidemic situation are force majeure. Therefore, VAT deduction is allowed. That is, there is no need to transfer out the input tax.

For more information about the problems during the epidemic, please refer to:

How to do the accounting treatment of exemption from value-added tax during the epidemic?

How to do the accounting entries of mask donation during the epidemic? How to deal with accounts?

What are the preferential tax policies for enterprises during the epidemic? How to reduce or exempt?

During the epidemic period, does the company need to pay personal income tax when giving employees living difficulties subsidies?