Accounting entries of local education surcharge and education fee surcharge reduction and exemption
Generally, revenue is recognized first:
Debit: accounts receivable
Loan: income from main business
Preparation of value-added tax and additional tax:
Borrow: taxes and surcharges
Loan: tax payable-surcharge for education payable
Additional local education in previous years:
Debit: profit and loss adjustment of previous years (taxes and surcharges)
Loan: adjustment of profit and loss in previous years (income from main business)
Taxes payable-VAT payable
Cumulative time:
Borrow: taxes and surcharges
Loan: Taxes payable-education surcharge
When reducing or exempting:
Borrow: Taxes payable-education surcharge
Loan: non-operating income
What is the education surcharge?
Education surcharge is an additional fee levied on enterprises for the development of education, which is calculated and paid by enterprises according to a certain proportion of turnover tax payable.
What are taxes and surcharges?
Taxes and fees refer to the relevant taxes and fees that enterprises should bear in their business activities, including vehicle purchase tax, consumption tax, property tax, vehicle and vessel tax, urban land use tax, land value-added tax, resource tax, urban maintenance and construction tax, environmental protection tax, farmland occupation tax, education surcharge, stamp duty, deed tax, etc.
At the end of the period, the balance of this account should be transferred to the "profit of this year" account, and there should be no balance in this account after the carry-over.
What was the previous annual profit and loss adjustment?
The adjustment of profit and loss in previous years is the correction of major errors in financial statements in previous years. Such errors include calculation errors, accounting entries errors and omissions.