Accounting treatment of paying water and electricity bills

When an enterprise pays the water and electricity charges, it will include the department using the water and electricity charges in the corresponding accounting subjects, such as the electricity charges used by the management department, and make the following accounting entries:

Borrow: management fee-utilities

Taxes payable-VAT payable-input tax

Loans: bank deposits, etc.

Management expenses belong to the period expenses, which are included in the losses or gains of the current period when incurred, and belong to the profit and loss category. The accounting contents include company funds, trade union funds, unemployment insurance premiums, labor insurance premiums, directors' membership fees, agency fees, consulting fees, attorney fees, business entertainment expenses, office expenses, travel expenses, post and telecommunications expenses, greening expenses, manager's salary, etc.