Advance Payment

1. Accounts payable by the enterprise in accordance with the contract stipulations.

If there is not much prepayment, you may not set up this subject, and the prepaid amount will be directly credited to the accounts payable.

The project price paid by the enterprise for prepaid construction projects is also accounted for in this subject.

If an enterprise (insurance) undertakes payment in advance of insurance business, it may change the subject into a "1123 prepaid payment" subject, and shall be in accordance with the insurer or beneficiary.

Two, the accounts can be detailed according to the suppliers.

Three, the main accounting treatment of prepaid accounts.

(1) an advance payment made by an enterprise due to purchase, debit the subject, and credit "bank deposits".

Upon receipt of the purchase amount, the amount of purchased material cost should be included in the account, and materials such as "material procurement" or "raw materials" and "inventory commodities" should be debited, and the subject should be credited according to the amount payable.

The amount paid is to debit the subject, credit the "bank deposit" and other subjects, and return the overpayment to the opposite accounting entry.

The VAT input tax should be dealt with accordingly.

(two) the project price paid by the enterprise for prepaid construction projects will be debited to this subject, and credits such as "bank deposits" should be credited.

According to the progress of the project, the project price will be settled, and the subject of "in construction" will be debited, and the subjects such as "bank deposit" and so on will be credited.

(three) enterprise (insurance) pays in advance, debit this subject, and credited "bank deposit" and other subjects.

Four. The debit balance at the end of the course reflects the amount of advance payments made by the enterprise; if it is the credit balance at the end of the term, it reflects the amount that the enterprise has not yet paid.