How to make government subsidy accounting entries?

When receiving monetary funds such as bank deposits,

Debit: bank deposit,

Loan: deferred income,

When buying and building assets,

Borrow: fixed assets, etc.

Loans: bank deposits, etc.

Depreciation,

Borrow: management fees, etc.

Loan: accumulated depreciation,

Share deferred revenue at the end of the month,

Debit: deferred income,

Loans: other income,

Sell equipment,

Borrow: clean up fixed assets,

Accumulated depreciation,

Loans: fixed assets,

Debit: bank deposit,

Loan: fixed assets cleaning,

Non-operating income,

Resale deferred income balance,

Debit: deferred income,

Loan: non-operating income,

2. Net amount method:

When receiving monetary funds such as bank deposits,

Debit: bank deposit,

Loan: deferred income,

When buying and building assets,

Borrow: fixed assets, etc.

Loans: bank deposits, etc.

Debit: deferred income,

Loans: fixed assets,

Depreciation,

Borrow: management fees, etc.

Loan: accumulated depreciation,

Equipment for sale:

Borrow: clean up fixed assets,

Accumulated depreciation,

Loans: fixed assets,

Debit: bank deposit,

Loan: fixed assets cleaning,

Non-operating income,

Income-related government subsidies:

If it is used to compensate the future related costs or losses of the enterprise, it will be recognized as deferred revenue, and it will be included in the current profit and loss or offset the related costs during the period when the related costs or losses are recognized.

If it is used to compensate the related costs or losses that have occurred in the enterprise, it will be directly included in the current profit and loss or offset the related costs.

The accounting treatment of government subsidies in China usually adopts income method and net method for accounting.

The income method recognizes government subsidies in full as income,

The net method is to deduct government subsidies as the book value of related assets or compensated expenses.