Some enterprises will pay off their debts with their own goods when they are unable to repay their debts, so that their debts will be reduced. Then how to deal with the accounts when the enterprise pays off its debts with its own goods?

Accounting entries for debt repayment of self-produced goods

Paying off debts with self-produced taxable consumer goods:

Debit: accounts payable

Loan: income from main business

Taxes payable-VAT payable (output tax) (calculated at average price)

Borrow: taxes and surcharges

Loan: taxes payable-consumption tax payable (calculated at the highest price)

What is the income from the main business?

Refers to the operating income obtained by enterprises engaged in production and business activities in this industry. According to the different activities of enterprises in various industries, for example, the main business income of industrial enterprises refers to "product sales income"; ; The main business income of a construction enterprise refers to "project settlement income"; The main business income of a transportation enterprise refers to "transportation income"; The main business income of wholesale and retail trading enterprises refers to "commodity sales income" and so on.

What are accounts payable?

It is used to calculate the amount that an enterprise should pay for business activities such as purchasing materials, commodities and accepting labor services. Usually refers to the debt arising from the purchase of materials, goods or services, which is caused by the inconsistency between the time when the buyer and the seller obtain materials and pay for the goods in the purchase and sale activities.

What is consumption tax?

It is the general name of all kinds of taxes with the turnover of consumer goods as the object of taxation. The tax levied by the government on consumer goods can be collected from wholesalers or retailers. Consumption tax is a typical indirect tax. On the basis of general collection of value-added tax on goods, consumption tax is levied on some consumer goods. Its purpose is to adjust the industrial structure, guide the consumption direction and ensure the national fiscal revenue.

The current scope of consumption tax collection mainly includes: cigarettes, alcohol, cosmetics, refined oil, firecrackers, fireworks, precious jewels and jade, golf balls and equipment, high-end watches, yachts, wooden disposable chopsticks, solid wood floors, motorcycles, automobiles, batteries, paints and other tax items.