How to do the accounting treatment of trade-in?

With the development of the economy and society, the speed of renewal of goods is faster, many consumers are not willing to buy new goods because of the old goods still have the value of use, business in order to promote sales of new activities to carry out trade-in activities, how to do the relevant accounting treatment?

Accounting entries for trade-in

1, the enterprise to trade-in the sale of goods and to obtain the exchange of goods:

Borrow: bank deposits

Inventory of goods (exchanged for goods)

Loan: income from the main business

Taxes and charges payable - payable VAT (output tax)

2. Enterprises carry forward the cost of goods sold:

Borrow: cost of main business

Loan: inventory goods (goods sold)

What is the main business income?

Main business income is the business income earned by an enterprise engaged in the production and operation activities of the industry. The main business income includes the income from the sale of products, semi-finished products and the provision of industrial labor operations in the manufacturing industry; the income from the sale of goods in the commodity distribution enterprises; the income from tickets, customer income, catering income, etc. in the tourism service industry. Revenue from main business belongs to the profit and loss account, whose debit side indicates a decrease and credit side indicates an increase.

What are taxes payable?

Taxes payable refers to all kinds of taxes and fees payable by an enterprise based on the business income and profit realized in a certain period of time, which are accrued in accordance with the provisions of the current tax law using a certain method of tax calculation. Including: value-added tax, education surcharge, stamp duty. This account at the end of the credit balance, reflecting the enterprise has not paid the tax; at the end of the debit balance, reflecting the enterprise overpayment or not yet deductible taxes.

What is the cost of main business?

The cost of main business refers to the cost incurred by an enterprise for recurring activities such as selling goods and providing labor services. It includes direct materials, direct labor and manufacturing overhead. Enterprises generally in the recognition of sales of goods, the provision of services and other main business income, or at the end of the month, the cost of goods sold, the cost of services provided to the main cost of business. The debit side of the registration of the sale of various commodities, the provision of a variety of services and other actual costs, the credit side of the registration of the cost of the transfer to the profit for the year, after the carry-over of this account has no balance.