How to deal with the advance payment and rent withdrawal of the property company?

How to deal with the advance payment and rent withdrawal of the property company?

The rent of the current year is determined as income, and the accounts of the next year are collected in advance.

Also determine the cost and advance payment.

The rent is full VAT.

Water and electricity charges are collected, and the invoice indicates that the water and electricity charges are collected and paid to the water and electricity company as a cost. Property companies pay taxes on the basis of collecting fees. Receipts cannot be used as operational income, but individuals generally don't care. Experienced accountants know, but ordinary business accountants don't.

Why are accounts received in advance liabilities?

Advance payment is the money received from the other party in advance, but the goods or services are not provided temporarily, so it is not its own assets at this time. If the goods or services are not provided in the end, you need to pay back the money, which is equivalent to the money you owe each other now. Therefore, prepayments are included in the liability category.

Advance payment is a part of the money received from the customer after signing the contract, that is, the enterprise first collects the payment from the other company according to the agreement, and then needs to provide goods or services to repay the debt. Therefore, accounts received in advance belong to liabilities in accounting subjects.

The lender of advance payment registers the amount of advance payment and supplementary payment paid by the buyer, and the debit registers the amount of advance payment written off by the enterprise after delivery to the buyer and the amount of overpaid payment returned to the buyer.

How to deal with the advance payment and rent withdrawal of the property company?