Accounting entries for the purchase of equipment in installments
1, the purchase of equipment
Borrow: fixed assets
Taxes payable - payable VAT (input tax)
Loan: accounts payable
2, payable in installments
Borrow: accounts payable
Loan: accounts payable
This is the first time that a company has purchased equipment in installments. : Accounts Payable
Credit: Bank Deposit
3. Assuming that there is no more than 3 years, the original value of the fixed assets can be based on the amount of the down payment plus the total amount payable.
(1) When purchasing
Borrow: fixed assets
Loan: bank deposits
(2) When accounts payable are paid in installments
Borrow: accounts payable
Loan: bank deposits
4. Assuming that the payment period has been more than 3 years, the amount of the payment due needs to be discounted, and the fixed assets are recorded at their present value .
(1) When fixed assets are recorded
Borrow: Fixed Assets
Unrecognized Financing Costs
Loan: Bank Deposits
(2) When long-term payables are amortized
Borrow: Finance Costs
Loan: Unrecognized Financing Costs
(3) When installments are paid
Borrow: Long-term Accounts Payable
Loan: Bank Deposit
What are installment payments?
Installment receipts and installments correspond to installment payments, installment sales refers to the goods have been sold, but the payment is recovered in installments of a sales method, is an important promotional tool used by modern enterprises, generally suitable for a large amount of large amount of money, the collection period of time, the recovery of the money of the risk of large characteristics of the major commodities transactions.
Accounting entries for installment collection
1, issued installment goods
borrow: issued goods
credit: goods in stock
2, received the installment receivable on schedule
borrow: cash on hand
credit: income from the main business
3, at the same time, the cost of goods sold
Borrow: the cost of doing business
Credit: issued goods