when small-scale taxpayer enterprises handle the business of carrying forward the cost of selling goods, they generally carry out accounting treatment in three stages: purchase, sale and carrying forward the cost. What are the relevant accounting entries?

accounting entries of carry-over cost of goods sold by small-scale taxpayers

1. When purchasing:

Borrowing: inventory goods/raw materials (total amount of price and tax)

Lending: bank deposits/accounts payable/prepayments

2. When selling:

Borrowing: bank deposits/accounts receivable

Lending: main business.

There are three main collection methods for small-scale taxpayers: audit collection, audit collection and regular quota collection.

audit and collection: the tax authorities calculate the way to pay taxes according to the operating conditions reflected in the accounts provided by taxpayers and the applicable tax rate. This method is generally applicable to tax paying units with relatively sound financial and accounting systems that can conscientiously fulfill their tax paying obligations.

Check and collect: The tax authorities check and determine the approved output and sales volume of taxable products produced by taxpayers according to their employees, production equipment and raw materials, and collect taxes accordingly. This method is generally suitable for tax payers whose books are not sound enough, but who can control raw materials or sales.

Regular quota collection: the tax authorities determine the turnover and income on a case-by-case basis through typical surveys and collect taxes accordingly. This method is generally applicable to small tax paying units without complete assessment basis.