What is the accounting entry for the property company to collect water and electricity charges?

The water and electricity costs incurred in the course of enterprise operation can be transferred to the electric power bureau through public accounts, and can also be uniformly collected by property companies. How do property companies make accounting entries when collecting water and electricity charges?

How to write accounting entries when a property company collects water and electricity charges?

When collecting utilities:

Debit: Cash on hand.

Loans: other receivables-charge for utilities.

When handing over to the electric power bureau:

Borrow: other receivables-charge for water and electricity.

Credit: Cash on hand

Some accounting entries received in advance are as follows:

Collection time

Debit: Cash on hand.

Loan: other receivables-collecting water and electricity fees.

Write off the advance part according to the owner's electricity fee:

Borrow: other receivables-charge for water and electricity.

Credit: Cash on hand

How do property companies pay taxes and issue invoices when collecting water charges?

The Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Value-added Tax of Tap Water in Property Management Services clearly stipulates: "Taxpayers provide property management services, collect tap water fees from clients, and the balance after deducting the tap water fees paid by them is sales. According to the simple tax calculation method, VAT is calculated and paid at the tax rate of 3%."

At the same time, the interpretation of the announcement is further clarified: taxpayers can issue special invoices for value-added tax to clients at the rate of 3%. There is no provision for using differential invoices. Of course, special VAT invoices can be issued in full.