Products against debt is essentially selling a creditor's products, sales proceeds are used to offset the debt, so it is treated as a sale, and the tax is calculated according to the market sales price, the entries:
Borrow: Accounts Payable
Loan: Revenue from Main Business
Taxes Payable - VAT Payable (Itemized Taxes)
At the same time, the carry forward of the cost
Borrow: Main business Cost
Credit: Inventory goods
Accounting treatment of product sales:
When accounting for the sale of goods, the first thing to consider is whether the revenue from the sale of goods meets the conditions for revenue recognition. If it meets the five specified recognition conditions, the enterprise should promptly recognize the revenue and carry forward the relevant cost of goods sold.
Enterprises that determine that revenue from the sale of goods meets the recognition conditions should provide conclusive evidence. Under normal circumstances, the sale of goods by way of collection and payment, recognized revenue in the completion of the collection procedures; delivery of goods sales, in the invoice billing receipt of payment recognized revenue.
The sale of goods on delivery means that the buyer has paid for the goods according to the invoice issued by the enterprise and obtained the bill of lading.
In this way, the purchaser pays for the goods and obtains the bill of lading, the enterprise has not yet delivered the goods, the seller retains the minor risks and rewards of ownership of the goods, and the major risks and rewards of ownership of the goods have been transferred to the purchaser, and the revenue should be recognized when the invoice is issued and the bill of lading is received.
When recognizing revenue from the sale of goods, the actual amount received or receivable, debit "accounts receivable", "notes receivable", "bank deposits" and other subjects, according to the amount of sales revenue determined, credited to the "notes receivable", "bank deposits" and so on. The amount of sales revenue is determined, credited to the "main business income" and other accounts, according to the amount of value-added tax stated on the special VAT invoice, credited to the "payable taxes - payable value-added tax (output tax)" account. "
At the same time, according to the actual cost of goods sold, debit the "cost of raw business" and other accounts, credit "inventory goods" and other accounts. Enterprises can also be carried forward at the end of the month the actual cost of goods sold during the month. p>Scope of debt in rem:
Article 9: Debts which are still not paid in monetary form after the bank has taken all effective means to settle them may be accepted as debt in rem. However, if the debt in rem is handled in accordance with the effective legal documents of the court or arbitration institution, it is not subject to the restriction of this article.
Article 10 of the debt shall be offset against the property owned by the debtor or the debtor enjoys the right of disposal in accordance with the law, and has a strong ability to liquidate the property. Mainly includes the following categories:
(a) securities, such as bills of exchange, promissory notes, checks, bills of lading, stocks and bonds, etc.;
(b) houses or other buildings on the ground;
(c) state-owned land use rights with a remaining useful life of 20 years or more;
(d) means of transportation;
(e) production equipment and office equipment;
(f) the debtor's ownership or the debtor enjoys the right to dispose of, and has a strong liquidity. office equipment;
(vi) raw materials and finished products;
(vii) other property with strong liquidity, etc.
Article 11 Banks shall not accept the following properties for the purpose of offsetting debts, except for those handled in accordance with the effective legal documents of the people's courts and arbitration institutions:
(1) Where the various unpaid taxes and expenses incurred on the basis of the property to be offset against the debts are close to, equal to, or in excess of the value of the property;
(2) Where the ownership or right of use is unknown or disputed;
(3) Where the property has been preceded by the property; and >(iii) property that has been mortgaged or pledged to a third party before the Bank;
(iv) property that has been seized, impounded, or supervised in accordance with the law;
(v) the debtor's public welfare nature of the employees' residences and other living facilities, educational facilities, and medical and health care facilities;
(vi) other property that is impossible or difficult to realize over a long period of time.
Collective land use rights are generally not used separately to offset bank debts; however, if a house on collective land is used to offset a debt, the collective land use rights within the occupancy of the house shall be used to offset the debt together.
Baidu Encyclopedia - Debt in kind