A: What accounting treatment does an enterprise need to do for cancellation? When canceling liquidation, two basic account "liquidation expenses" and "liquidation gains and losses" should be set. The accounting contents of these two accounts are as follows:
1, liquidation expenses:
Used to specifically account for various expenses and costs during the liquidation period of an enterprise. Its contents include: salary, announcement fee, consulting fee, office fee, litigation fee and other liquidation expenses that must be paid in the liquidation process. These expenses are paid in priority from the existing property. The debit of the "liquidation expenses" account registers the liquidation expenses during the liquidation period; At the end of liquidation, the total amount will be transferred from the credit of this account to the debit of liquidation profit and loss, and this account has no balance.
2. Liquidation gains and losses:
Belongs to the profit and loss category, accounting for all gains and losses realized during the liquidation period of the enterprise. The credit of the "liquidation gains and losses" account reflects the liquidation income of the enterprise, including property inventory gains, property revaluation gains, property realization gains and debts that cannot be repaid. The debit of this account reflects the liquidation losses of enterprises, including property losses in liquidation, including property losses, liquidation losses and irrecoverable claims; The ending balance may be in the credit or debit, and then transferred to the undistributed profit account. At the end of liquidation, there is no balance in the account.
How to make accounting entries when a company cancels?
(1) Pay liquidation expenses.
Debit: liquidation expenses
Loans: bank deposits, bills receivable and other related subjects.
(2) Carry-over liquidation expenses
Debit: liquidate profits and losses.
Credit: liquidation expenses
3. Accounting treatment of asset sale and its profit and loss.
(1) After investigation, when there is a surplus of raw materials,
Borrow: raw materials
Credit: liquidation profit and loss
(2) Amortize all intangible assets, deferred assets and accrued expenses.
Debit: liquidate profits and losses.
Loans: intangible assets, deferred assets, accrued expenses, etc.
(3) Revenue from fixed assets auction
Debit: bank deposit
Debit: accumulated depreciation
Loans: fixed assets
Credit: liquidation profit and loss
(4) Transfer the above liquidation net profit and loss to the undistributed profit account.
Debit: liquidate profits and losses.
Loan: Profit Distribution-Undistributed Profit
4. Accounting treatment of recovering creditor's rights, paying off debts and accounting treatment of profits and losses.
(1) After careful checking, the accounts receivable cannot be recovered.
Debit: liquidate profits and losses.
Credit: accounts receivable
(2) After careful examination, the accounts payable are really unable to pay off.
Debit: accounts payable
Credit: liquidation profit and loss
(3) Transfer the above liquidation net profit and loss to the undistributed profit account.
Debit: liquidate profits and losses.
Loan: Profit Distribution-Undistributed Profit
5. Accounting treatment to make up for losses in previous years.
(1) Use surplus reserve to make up for losses in previous years.
Borrow: surplus reserve-general surplus reserve
Loan: Profit Distribution-Undistributed Profit
(2) Pay the annual income tax of liquidation.
Debit: profit distribution-undistributed profit
Loan: Taxes payable-income tax
Debit: Taxes payable-income tax
Loans: bank deposits
(3) Accounting and distribution of surplus property. The remaining property after liquidation shall be distributed among all owners according to the paid-in share capital.
Debit: capital reserve, surplus reserve, profit distribution-undistributed profit
Loans: cash, bank deposits
How to deal with the cancellation of the deposit by the company?