How to make accounting entries for prepaid property fees?

Property management fees are generally paid by the owner and the buyer after the actual delivery of the house. How to make accounting entries for prepaid property fees? This article will give a detailed answer to this question.

Accounting entries of prepaid property fees

Debit: advance payment

Loans: bank deposits

Prepayment: refers to the money paid by an enterprise to a supplier in advance in monetary funds or monetary equivalents according to the provisions of the purchase contract. For example, advance payment, advance project payment, advance reserve fund, etc.

Prepayment is a current asset, which does not have to be compensated by money, but the enterprise will compensate by some kind of goods, services or services in the short term. Belonging to the asset category, the prepayment made by the borrower registration enterprise to the supplier and the prepayment made by the lender registration enterprise to the purchased goods. The debit balance at the end of the period reflects the prepaid payment that the enterprise has paid to the supplier but has not yet delivered.

Accounting entries of property companies charging property fees

Property fees charged by property companies should be included in the accounting of main business income:

Debit: bank deposit/cash on hand.

Loan: income from main business

Accounting entries for enterprises to pay property fees

Property fees paid by enterprises should be accounted as period fees:

Debit: management expenses/sales expenses/manufacturing expenses.

Loan: bank deposit/cash on hand.

Property fee refers to the fees charged by property owners and users who entrust property management units to carry out daily maintenance, repair, renovation and other services for houses, buildings and equipment, public facilities, greening, sanitation, transportation, public security, environment and other facilities related to residents' lives in residential areas.