To take the old for the new way to sell goods, should be based on the sales price of new goods for the same period to determine the sales, shall not be deducted from the purchase price of the old goods, the sale of goods and the acquisition of old goods for a fee are two different business activities, sales and acquisition can not be offset against each other.
Generally divided into three cases:
One is the sale of old goods to the waste materials recycling unit.
The second is the recycling of old goods as resources.
Third, in order to avoid pollution of the environment after the old commodities are discarded (e.g., old batteries, etc.), the enterprise will recycle the old commodities for comprehensive treatment. In either case, after obtaining the old goods enterprises generally first as inventory management.
Depending on the situation, the amount of its value is credited to "raw materials" or "inventory", because generally can not get the corresponding VAT invoice of the old goods, it can not be calculated to offset the input tax.
ExpandedExample of a department store sales A brand TV retail price of 3510 yuan / unit (including value-added tax), if the customer returns the same brand of old TV for the price of 1,000 yuan, pay the difference of 2,510 yuan can be exchanged for a brand new TV, the month of the use of this method of sales A brand TV 100, the value-added tax rate of 17%, for the accounting entries are as follows:
Borrow: bank deposits ? 251000
Inventory goods - old TV 100000
Credit: Revenue from main business - A brand TV ?300000
Taxes payable - VAT payable (output tax) ?51000
The recovered old TVs can't be counted as input tax. This is because the store is not specialized in the acquisition of waste materials, and should not account for the actual price received, 251,000 yuan, as the retail price, because that would understate the sales revenue and evade the VAT payment.
Baidu Encyclopedia - A Complete List of Common Accounting Entries