What should the accountant do after receiving the compensation for demolition?

In the course of daily business, if an enterprise receives compensation for demolition, it will generally pay according to the list of compensation personnel. How should it deal with the compensation for demolition received by enterprises?

Received accounting entries for demolition compensation

1. When receiving the relocation compensation, the relocation compensation is not the income generated by the daily business activities of the enterprise, so it cannot be included in the main business income, but should be included in the non-operating income.

Debit: bank deposit

Loan: non-operating income

2. When purchasing fixed assets,

Borrow: fixed assets

Taxes payable-VAT payable (input tax)

Loans: bank deposits

3. Special payables formed by long-term assets are transferred to capital reserve:

Borrow: fixed assets

Loan: capital reserve

Difference between main business income and other business income

Main business income and other business income belong to operating income.

Operating income refers to the income obtained from the main business or other businesses. Refers to the monetary income obtained by commercial enterprises in selling goods or providing services within a certain period of time. Divided into main business income and other business income.

Such as commodity sales income of commercial enterprises, product sales income of production and processing enterprises, food and beverage sales income of catering industry, service income of service industry, warehousing income of warehousing enterprises, freight income of transportation enterprises and agency transportation income.

What is non-operating income?

Non-operating income refers to all kinds of income that are not directly related to the daily business activities of enterprises. It is an integral part of an enterprise's financial performance. For example, confiscate the deposit income of packaging materials, recover the arrears of transferred employees, and fine the net income. The accounting of non-operating income of enterprises is carried out under the subject of "non-operating income", and detailed accounts can also be set up under this subject according to various incomes.