Traditional Culture Encyclopedia - Hotel franchise - How to write accounting entries for hotel restaurant decoration expenses?

How to write accounting entries for hotel restaurant decoration expenses?

The general amortization period for decoration expenses incurred by hotel restaurants is more than one year. They can be processed through long-term deferred expense accounts during accounting. What are the relevant accounting entries?

How to make accounting entries for hotel restaurant decoration expenses?

Debit: long-term prepaid expenses

Taxes payable - value-added tax payable - input tax

Bank deposits, etc.

Debit : Management expenses - amortization of long-term deferred expenses

Credit: Long-term deferred expenses

Is the decoration fee amortized in the current month or starting from the next month?

The decoration fee will be amortized starting from the next month and included in the "long-term deferred expenses" account in accounting.

According to Article 70 of the "Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China": "Others mentioned in Item (4) of Article 13 of the Enterprise Income Tax Law should be regarded as long-term deferred expenses." Expenditures will be amortized in installments starting from the month following the month in which the expenditure occurs, and the amortization period shall not be less than 3 years."

Accounting treatment calculated as long-term deferred expenses:

(1) When incurred

Debit: long-term deferred expenses

Credit: bank deposit

(2) When amortized

Debit: administrative expenses

Credit: long-term deferred expenses

What are long-term deferred expenses?

Long-term deferred expenses refer to various expenses that have been incurred by the enterprise, but the amortization period is more than 1 year (excluding 1 year), including start-up expenses, improvements to leased fixed assets and amortization Fixed asset overhaul expenses and stock issuance expenses with a period of more than one year.

Characteristics of long-term deferred expenses:

(1) Long-term deferred expenses need to be amortized evenly over the beneficial period;

(2) Long-term deferred expenses The amortized expenses themselves have no value and cannot be transferred;

(3) The long-term amortized expenses have the nature of collective expenses.