Question 2: What do you mean by advance payment? Advance payment: the money received in advance, such as the money received from the buyer before the goods are sold.
Question 3: Which subject should the down payment be credited to? The entries are as follows:
Borrow: Bank deposit or cash.
Credit: accounts received in advance
When the product is sold:
Debit: accounts received in advance
Loan: income from main business
Question 4: What do you mean by advance loan? Take the money for yourself first, and it should be a liability in accounting.
Question 5: What are the accounts received in advance? Accounts received in advance refer to the money received in advance by the enterprise from the purchasing unit or the labor service receiving unit according to the contract, such as the deposit or deposit, rent or interest received in advance when the sales order is received. Although the enterprise has received these payments, they cannot be recognized as income, because the enterprise has not actually provided related goods or services, but has been charged as liabilities in the balance sheet.
Taking real estate as an example, it is easier to understand that the advance payment refers to the developer's purchase of houses for the buyer according to the contract, and the development and construction funds paid by the entrusting unit according to the contract agreement between the two parties. It is an important way for developers to raise development funds.
In the case of promising prospects in the real estate market, ordinary investors and institutions will show great enthusiasm for the pre-sale of real estate. This is because they only need to pay a small amount of money in advance to enjoy the value-added benefits of real estate in the future. For developers, pre-sale can raise necessary construction funds and transfer some market risks to property buyers. Although some future benefits may be lost, it is insignificant compared with the overall benefits. There are two main types of advance payment, one is installment payment, and the other is advance payment. Obviously, the latter situation is more beneficial to developers. However, the pre-sale of buildings will have certain specific restrictions in different countries or regions. In many parts of our country, local authorities have some regulations on the actual investment of developers before pre-sale. For example, the state stipulates that the total investment of developers exceeds 25%, and the construction progress and completion delivery date have been determined before the pre-sale. Therefore, developers can't think that they can do real estate for nothing and get rich returns.
Question 6: Accounts received in advance (sales revenue received in advance) refers to all or part of the money received in advance from the purchasing unit by the enterprise according to the contract.
Payment in advance is a kind of credit behavior that the seller collects part or all of the payment from the buyer in advance before sending the goods according to the contract or agreement. That is, the seller borrows a sum of money from the buyer first and then returns it with the goods, which is also a short-term financing method for the seller.
Prepayment is usually a way that buyers are willing to use when buying goods that are in short supply, so as to obtain the right to claim for goods. For products with long production cycle and high price, sellers often need to receive payment from buyers in advance to alleviate the contradiction that companies occupy too much funds.
Regular and large advance accounts are the focus of audit by the State Administration of Foreign Exchange and tax authorities. Prevent non-payment of foreign exchange or inflow of other foreign exchange funds; When pre-selling goods, invoices should be issued in time on the day when the goods are issued, and tax returns should be made in the current period to avoid suspicion of tax evasion.
In short, commercial credit financing is legal and convenient, with low financing cost and few restrictions. It is a kind of natural financing, and there is no need to make very formal arrangements or go through formal financing procedures. It is an effective financing method for small and medium-sized enterprises and is worth using.
When an enterprise prepays the payment according to the contract, it shall debit the bank deposit account and credit the prepayment account. When product sales are realized, the account receivable should be debited according to the sales amount and credited to the account of product sales income, and the prepaid account should be transferred from the account of prepayments to the account of accounts payable.
"Prepaid payment" accounts should be set up in different currencies and purchasing units for detailed accounting.
Enterprises with few accounts received in advance can also directly record the accounts received in advance into the accounts receivable, without setting up the accounts received in advance.
Question 7: The main difference between accounts received in advance and accounts receivable: 1. Accounts receivable is an asset account. Accounts receivable refers to the money that an enterprise should collect from the unit that buys or accepts services when selling goods and providing services, and is the creditor's right formed by the business activities such as selling goods and providing services. 2. Accounts received in advance are liabilities. Accounts received in advance refer to the money received in advance by the enterprise from the purchasing unit according to the contract. The money received in advance by an enterprise before delivery shall be regarded as a liability of the enterprise. 3. When selling, it is the accounts receivable that are paid first and then paid, and the accounts receivable that are paid first and then collected. Accounts receivable are mainly used for credit sales. At the time of sales, the main business income is debited and the value-added tax payable is credited. When collecting money, debit the bank deposit and credit the accounts receivable. If the goods sold have not received the payment, they will be debited to the accounts receivable. Although the nature of accounts receivable and accounts receivable in advance are different, they all account for sales business, credit accounts receivable and accounts receivable when receiving money, and debit accounts receivable and accounts receivable when delivering goods, so the content of debit and credit bookkeeping is the same. 4. Creditors' rights arising from the accounting of accounts receivable that meet the recognition conditions of income from selling goods and providing services are assets to creditors. 5. The deposit or advance payment received in advance from the accounts receivable of the accounting enterprise for selling goods and providing services in accordance with the contract is a liability of the receiving enterprise (that is, the money received before the conditions for confirming the income from selling goods and providing services are met). Comparison between deferred income and accounts received in advance According to China's accounting standards for business enterprises and the relevant provisions of the Accounting System for Business Enterprises, we can know the similarities and differences between deferred income and accounts received in advance. First, concepts are different from accounting subjects. Deferred income refers to the unconfirmed income or income of the enterprise, that is, the income that has not been confirmed for the time being, including the unconfirmed labor income and unrealized financing income. In the future, it will be recognized as income or income by stages, which is deferred, and the "deferred revenue" account will be set for accounting; Accounts received in advance refer to the money received in advance by the enterprise from the purchasing unit or the labor service receiving unit according to the contract. Generally, it is recognized as income at one time when goods or services are issued in the future, and it is not deferred. Therefore, the account of "accounts received in advance" is set for accounting. Deferred income and advance receipts have the nature of advance receipts, but the former needs to be deferred and the latter does not. Therefore, they are accounted for by different accounting subjects. Second, "deferred income" and "accounts received in advance" are current liabilities. Both "deferred income" and "accounts received in advance" belong to current liabilities, but "deferred income" belongs to internal liabilities, and detailed accounts should be set up according to its contents for detailed classification accounting; However, "accounts received in advance" belong to the nature of external liabilities, and should be classified and accounted for according to the subsidiary ledger set by creditors. These contents can also be reflected in the early international accounting standards. Third, "deferred income" and "accounts received in advance" are transitional subjects. It can be seen from the relevant contents of the Accounting System for Business Enterprises that deferred income and accounts received in advance are generally converted into income and recognized when goods or services are delivered to each other in the future, so they are all transitional subjects. While the accounts received in advance are converted into income at one time when goods are issued or services are provided, while those in deferred revenue are converted into income or income in stages when services are provided to the outside world, that is, deferred revenue generally needs to allocate them reasonably in the future. Fourth, the presentation method on the balance sheet is the same. Deferred income and accounts received in advance are listed as current liabilities in the balance sheet. According to China's enterprise accounting system, the ending balance of deferred income is generally reflected in the "estimated liabilities" of current liabilities in the balance sheet; The ending balance of "accounts received in advance" is reflected in the "accounts payable" item of current liabilities in the balance sheet. In short, in practical work, we should correctly understand and use these two accounting subjects, so as to correctly carry out accounting and truly reflect the financial situation and operating results of enterprises.
Question 8: When is the confirmation time of sales revenue in the case of advance payment? The advance payment of goods is to confirm the income when the goods are issued, and there is no saying that the income is confirmed only after the last batch.
Question 9: What do the debits and credits of accounts received in advance represent respectively? 1. Debit amount (indicating a decrease in advance receipts).
Accounts receivable recognized in synchronization with income, customers whose bad debts have been written off have been confirmed to have the ability to resume payment, including accounts receivable, other accounts receivable, unpaid bills receivable, unpaid commercial bills, short-term loans, packaging fees, transportation fees and miscellaneous insurance fees paid by the purchasing unit, etc.
2. Credit amount (indicating the increase of accounts received in advance)
Transfer of customer money received in advance, business money received, commercial bills received in advance, accounts receivable paid by inventory, accounts receivable paid by equity, accounts receivable paid by creditor's rights, fixed assets paid off by intangible assets, confirmed bad debt losses, debt restructuring losses, accounts receivable or other payables.
3. Ending balance
The final credit balance of accounts received in advance reflects the pre-purchase payment of the enterprise, and the final debit balance belongs to the nature of accounts receivable, reflecting the money that the enterprise should collect from the purchasing unit or the labor service receiving unit.
Question 10: What does pre-sale mean? The goods were not delivered, so the payment was made first.