Differences In Accounting Treatment Between Public Institutions And Enterprises

A public institution refers to a social service organization that is organized by state organs for the purpose of public welfare or organized by other organizations to engage in educational, scientific, technological, cultural and health activities.

Enterprises are profitable economic organizations that engage in economic activities and perform independent economic accounting.

Because of this, especially in public institutions, some of them are carrying out the accounting system of enterprises, and some are carrying out the accounting system of administrative institutions. This brings difficulty to the accounting and handling of accounts and the calculation of taxes.

Therefore, it is of great significance to understand the discrepancy between the accounting of institutions and the accounting treatment of enterprises, which is of great significance for correctly handling accounting matters and correctly performing the duty of paying taxes according to law.

When dealing with the same economic business, the institutions and enterprises do the same accounting entries and have the same direction of lending. However, the contents are recorded in different accounts for different names of different accounting regulations.

If the loan is accounted for, the enterprise is credited to the term "short-term loan" or "long-term loan" according to the term of the loan, while the institution does not divide it into long-term or short-term loans.

Two, there are differences in accounting treatment. Because of the differences in the production and operation, the internal cost accounting and the nature of business activities, the accounting treatment of different units is different.

1, because of the difference in product production.

Such differences should be divided into two situations: first, public institutions engaged in product production and public institutions that are not engaged in product production should be treated differently because of differences in accounting treatment.

Two, there are differences in accounting treatment between public institutions and enterprises that are also engaged in product production, and they should also be treated differently.

Take the material procurement business as an example, the practice of the enterprise is divided into two types: the general taxpayer and the small-scale taxpayer. The former adopts the tax free price to differentiate the input tax while the latter adopts the tax included price.

The accounting entry is: 1, the general taxpayer enterprise: borrow money from the general taxpayer enterprise: the material purchase, the tax payment should be paid - the value added tax (input tax) should be paid: the bank deposit will be (2) the small scale taxpayer enterprise: borrow the material purchase: the bank deposit will be allocated to the bank.

The general taxpayer institutions purchase non self use materials without accounting for tax purchase price. The general taxpayers purchase self employed materials, and small scale taxpayers purchase self occupied materials and non self use materials.

The accounting entries are as follows: (1) the general taxpayer institutions purchase non self use materials: they are: materials, taxes, taxes, taxes, taxes, etc., they should pay the value added tax (input tax): bank deposits (2), and the rest: Loans: materials and loans: Bank deposits, 2 yuan, and discrepancies caused by the implementation of internal cost accounting.

As we all know, every enterprise must calculate the cost of products and match the current revenue to determine the operating profit.

The institutions are divided into the following situations: the institutions that carry out the cost accounting are credited to the "cost and expense" account when they take out materials such as materials.

At the same time, this is the beginning of a series of business units: "material", "production cost", "product production", "product sales cost", "profit of this year", "profit distribution - undistributed profit".

(2) the cost accounting of institutions is: materials, costs, products, business expenses, operating balances, business expenditures, business balances, and surplus distribution - undistributed balances.

No cost accounting is carried out: "material" to "business expenditure", "business surplus" to "balance assignment - undistributed balance".

3, due to the separability of business activities of public institutions.

The activities of public institutions can be divided into two types: professional activities and business activities according to whether they belong to professional business activities or auxiliary activities.

Accordingly, the income and expenditure related to business activities of public institutions include business income, business expenses, operating income and operating expenses.

The accounting of this part is a big difference between the accounting system of the institution and the enterprise accounting system.

If we pay the expenses of office supplies, the management of enterprises will be: management fees, loans: bank deposits and loans, and institutions will be used as professional business activities: borrowing from enterprises: business expenses, loans and loans: bank deposits, such as: the cost of carrying forward products sold, and the way of enterprises: borrowing products: selling costs, loans: finished products, and public institutions as expenses handling outside professional business activities. Take expenditure accounting as an example.

Take the purchase of short term securities as an example, the practice of enterprises is: short term investment, borrowing and lending: short term investment, loans and loans: the way of bank deposits, institutions and institutions: foreign investment, loans and loans: bank deposits at the same time, business funds, general funds, loans and loans: enterprise funds, investment funds, securities companies, and securities businesses are purchased as securities business. Enterprises only need to increase short-term investments and reduce bank deposits. An accounting entry can be made clear, while institutions cause external capital investment to cause changes in the internal structure of enterprise funds, which must be reflected in two stages.

For example, the purchase of fixed assets, the practice of enterprises: borrowing from the fixed assets: the fixed assets, the credit and loans: the bank deposits and the public institutions.

Therefore, the accounting process is relatively complicated.