How to deal with the water and electricity charges collected by the property company?

When a property company collects water and electricity charges, it should set up a secondary account "collecting water and electricity charges" for accounting through other accounts payable. How to deal with specific accounts?

How do property companies charge utilities?

The collection of utilities by property companies is generally divided into the following two situations. One is that the company is only responsible for the collection and payment, and there will be no price difference in this process, and the company is not profitable. This situation does not involve taxes. Accounting treatment is as follows:

After receiving the collected water and electricity charges:

Debit: bank deposit

Loan: other payables-collection of water and electricity charges

When actually paying, make the opposite entry.

In another case, in the process of collecting and remitting utilities, the property company has the behavior of earning the difference. In this case, it is equivalent to the sale of enterprises, and the corresponding income and taxes need to be confirmed.

Upon receipt of payment:

Debit: accounts receivable

Loan: income from main business

Taxes payable-VAT payable-output tax

Accounts receivable refers to the money that an enterprise should collect from the buyer in the course of its daily operation, including taxes that should be borne by the purchasing unit or the labor service receiving unit, packaging fees paid by the purchasing buyer and various transportation and miscellaneous fees. In addition, in the case of sales discount, factors such as commercial discount and cash discount should also be considered.

Accounts receivable is a kind of creditor's right formed with the sales behavior of enterprises. Therefore, the confirmation of accounts receivable is closely related to the confirmation of income. Under normal circumstances, accounts receivable and income are recognized at the same time. This course sets up detailed accounts for detailed accounting according to different units that purchase or accept labor services.

Accounting treatment of paying water and electricity bills

Borrow: manufacturing cost-utilities (for production workshop)

Management fee-water and electricity fee (used by management department)

Sales expenses-utilities (used by sales department)

Loans: bank deposits