Under the new accounting system, how do companies make accounting entries when accepting donations?

1. When accepted: According to the value determined according to the new accounting standards (some companies directly follow the tax law), "fixed assets", "intangible assets", "raw materials" and other accounts will be debited, and "business" will be credited. "External income - donation proceeds" subject.

2. The enterprise calculates and pays income tax: If the amount of donation income is not large and the income tax burden is not heavy, the "income tax expense" account is directly debited and the "tax payable - income tax payable" account is credited.

Accepting donations means that enterprises accept various fixed assets donated by domestic and foreign local governments, social groups or individuals. When recording them, they should use relevant invoices or refer to similar fixed assets in the market, plus the amount that should be borne by the enterprise. Fees and other information are used to determine its price;

If a used fixed asset is donated, its condition should also be estimated, and its net value should be recorded in the "Capital Reserve" account. The "Capital Reserve" account is The owner's equity account is used to calculate the capital reserve obtained by the enterprise.

Extended information:

1. Relevant accounting provisions of the tax law on accepting donations:

1. Before January 2008, if an enterprise accepted donated assets, it should The entry value determined in accordance with the tax law is recognized as donation income and incorporated into the taxable income of the current period to calculate and pay corporate income tax. However, if the amount is larger, it can be included in taxable income over 5 years.

2. After January 1, 2008, Article 21 of the "Regulations for the Implementation of the Enterprise Income Tax Law" stipulates: "Accepting donation income" as mentioned in Article 6 (8) of the Tax Law refers to the acceptance by an enterprise of donation income. Monetary or non-monetary assets voluntarily and freely given by other enterprises, organizations and individuals. Income from donations shall be recognized when the donated assets are actually received.

2. The format when preparing accounting entries:

1. It should be borrowing first and then lending, borrowing branch, debit at the top and credit at the bottom;

2. The credit accounting symbol, account, and amount should be one space behind the debit side, indicating that the debit side is on the left and the credit side is on the right.

3. There are two types of accounting entries: simple entries and compound entries. Simple entries are entries for one debit and one credit; compound entries are entries for one debit and multiple credits. Entries for multiple borrows and multiple credits and multiple borrows and multiple credits.

Baidu Encyclopedia-Accepting Donations

Baidu Encyclopedia-Accounting Entries