Inter-Period Allocation Accounts

It is used to calculate and supervise the expenses that should be shared by several accounting periods and to share the expenses among the accounting periods.

Such accounts are based on accrual basis.

There are two kinds of expenses for the accounting of the interbank account, which are: (1) some fees are paid first, but according to their benefit periods, they can be gradually included in the production cost or the period cost in the current and subsequent periods.

If you subscribe to newspapers and magazines, you will pay for several months at a time.

Therefore, the subscription fee should be included in the prepaid expenses first, then redistributed into the related costs. (2) some fees will occur gradually, but the settlement method will be paid after a certain period of time.

For example, the interest on bank loans is paid 3 times a quarter according to its settlement method, and the loan has a function every month in the loan unit. Therefore, the interest on the loan has not been paid yet, and it should be included in the relevant fees monthly.

The intertemporal amortization accounts include the "prepaid expense" account and the "withholding charge" account.

The structure of the intertemporal account is: the actual expenditure of the debtor's registration fees; the number of charges that the lender will bear during the accounting period.

The amount of outstanding expenses paid and not amortized.

The final balance of the "withholding charge" account is generally lenders, indicating the amount of accrued expenses that have been withdrawn and not yet paid.

Sometimes, at the end of the "advance fee" account, the target of public opinion is also paid to the borrower, such as the small amount of fees charged to each period, and the actual amount of payment is large.

The debit balance in the "accrued expense" account indicates the amount of outstanding expenses that have been paid and not yet amortized.