How to make an account of the company's donation expenditure?
The specific accounting treatment of the company's donation expenditure is as follows:
Borrow: non-operating expenses
Loans: Goods in stock
Taxes payable-VAT payable (output tax)
Non-operating expenses refer to the expenses incurred by an enterprise other than its operating profit, which mainly include: loss of non-current assets, expenditure on charitable donations, extraordinary losses, inventory losses, etc.
1. Loss of damage and scrapping of non-current assets refers to the cleaning loss caused by the scrapping of non-current assets due to natural disasters and other reasons.
2. Public welfare donation expenditure refers to the expenditure incurred by enterprises in making public welfare donations abroad.
3. Extraordinary loss refers to the loss caused by objective factors (such as natural disasters) of the enterprise, which is included in the net loss of non-operating expenses after deducting the compensation from the insurance company.
4. Inventory loss refers to the amount included in non-operating expenses after the enterprise finds out the reasons for the inventory loss of fixed assets and other assets and reports it for approval.
5. Fines refer to administrative fines, tax fines and other fines, liquidated damages, compensation and other expenses paid by enterprises in violation of laws, regulations and contracts.
Accounting treatment of company accepting donations
Borrow: raw materials/fixed assets (according to the confirmed value of donated items)
Taxes payable-VAT payable (input tax)
Loan: non-operating income (according to the fair value including tax of non-monetary assets donated)
Non-operating income refers to all kinds of income that are not directly related to the production and business activities of enterprises. Non-operating income is not generated by the operating capital cost of the enterprise and does not need to be paid by the enterprise. In fact, it is a net income and does not need to match related expenses. Therefore, in accounting, we should strictly distinguish between non-operating income and non-operating income.