How do property companies make accounting entries for low-value consumables?

When property companies receive low-value consumables, they usually record management expenses, so how should specific accounting entries be compiled?

The entry of low-value consumables in property companies

Debit: management expenses-amortization of low-value consumables

Loans: low-value consumables-maintenance tools

Low-value consumables-cleaning appliances

Low-value consumables-kitchen utensils

Accounting entry of property company paying cleaning fee

Borrow: management fees-cleaning fees (sewage charges, garbage disposal fees, etc.). )

Credit: Cash on hand

What are low-value consumables?

Low-value consumables refer to artificial materials whose unit value is more than 10 yuan and less than 2,000 yuan, and whose service life is less than one year, which cannot be used as fixed assets. It is similar to fixed assets. It can be used many times in the production process without changing its physical form. It also needs maintenance when it is used, and there may be residual value when it is scrapped. Because of its low value and short service life, its value is spread into the product cost by simple methods.

Amortization method:

1. One-time amortization method;

One-time amortization method refers to the method of transferring the value of low-value consumables to the product cost at one time. This method is suitable for articles with low value, short service life or fragile, such as glassware. When using this method to amortize the value of low-value consumables, we must strictly control its highest unit price and applicable varieties, otherwise it will affect the cost burden of products in each period, affect the management of low-value consumables in use, and prevent losses and waste.

2. Amortization method;

Installment amortization method is a method to amortize the value of low-value consumables into the product cost on a monthly basis according to the original value and expected service life of low-value consumables. Amortization period generally does not exceed one year. This method is suitable for low-value consumables with long term, high unit value or a large number of disposable recipients.

3. 50-50 amortization method;

The 50% amortization method, also known as the 50% amortization method, is that low-value consumables are amortized at 50% (50%) of the value when they are collected and at 50% (after deducting the residual value) when they are scrapped. Using this method, the low-value consumables keep half of their value on the books until they are scrapped, which shows that the low-value consumables in use occupy part of the funds, which is beneficial to the management of physical use and prevents the emergence of a large number of off-balance-sheet materials. This method is suitable for low-value consumables with a relatively balanced monthly collection and scrapping. If a large number of low-value consumables are collected at one time, in order to balance the product cost burden, the amortization amount can be included in the prepaid expenses first, and then spread into the product cost by stages.

How much is the management fee?

Management expenses refer to the expenses incurred by the administrative department of an enterprise for organizing and managing production and business activities. The specific items include: company funds, trade union funds, 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 and welfare expenses, etc. Expenses incurred by the board of directors and the administrative department in the operation and management of the enterprise or borne by the enterprise.

Management expenses belong to the period expenses and are included in the current profit and loss when incurred.

Enterprises should account for the occurrence and carry-over of management expenses through the subject of "management expenses". This course debits the management expenses incurred by the registered enterprise, and the management expenses at the end of the credit registration are transferred to the "profit of this year" course. After the transfer, this account should have no balance. This course carries out detailed accounting according to the expenditure items of management expenses.