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When prepaying property insurance premiums, if the amount is not large, the subject of “Administrative Expenses—Insurance Premium” should be debited, and the subject of “Bank Deposit” or “Cash in Inventory” should be credited.
When prepaying property insurance premiums, if the amount is relatively large, the subject of “Other receivables—Insurance premium” should be debited and the subject of “Bank Deposit” or “Cash in Inventory” should be credited. Then spread it out month by month. The deferred expense account has now been abolished.
Enterprise property comprehensive insurance mainly includes two major categories of property basic insurance and comprehensive insurance, as well as a number of additional insurances, which mainly underwrite those properties that can be reflected by accounting subjects and by corporate property item categories, such as fixed assets, current assets, off-books Assets, houses, buildings, machinery and equipment, materials and commodities, etc. The main difference between basic property insurance and comprehensive insurance is that the coverage of comprehensive insurance is wider than that of basic insurance.
Extended information:
When the damaged subject matter is fixed assets, the relevant monthly asset liability statement, asset change statement, fixed asset detailed account, and entry vouchers shall be provided; when the damaged subject matter is current assets or deferred assets, the relevant monthly balance sheet, Copies of deferred asset detailed ledgers, warehouse storage accounts, inventory checklists, receipt and delivery documents, detailed ledgers, and entry vouchers.
In the business of enterprise property insurance, the insurer must formulate differential rates for similar properties based on the overall average rate and according to the type of the insured property.
Generally speaking, the main factors affecting the different rates of property insurance of enterprises are the building structure of the house, the nature of occupation, the type of danger, safety facilities, fire protection equipment, etc. The current rate of enterprise property insurance is formulated under the conditions of considering the above factors and is divided into two parts: basic insurance rate and additional insurance rate. The basic insurance rate is further divided into three categories: industrial insurance, storage insurance, and general insurance, and each category has a different differential rate according to the nature of the occupation.
The additional insurance rate refers to the rate of additional insurance (special insurance) of enterprise property insurance, which is generally determined based on the loss rate calculated by the survey data. In addition, there are short-term rates for corporate property insurance, which are applicable to businesses whose insurance period is less than one year. The insurer can also use a preferential rate for the insured who has a comprehensive insurance unit or a good disaster prevention facility.
Prepaid accounts refer to the payment made by an enterprise in advance with monetary funds or monetary equivalents to supply units in accordance with the provisions of the purchase contract. In daily accounting, prepaid accounts are recorded according to the actual amount paid, such as prepaid materials, commodity purchase payments, and pre-purchased deposits for agricultural and sideline products that must be issued in advance and recovered later. For purchasing companies, prepaid accounts are a current asset.
Prepaid accounts generally include prepaid payment and prepaid purchase deposits. The prepayments of construction enterprises mainly include prepayments for construction projects, prepayments for materials, and so on. Prepayment refers to a claim arising from an agreement between the buyer and the seller that the buyer pays part of the payment in advance to the supplier. Prepaid accounts generally include prepaid payment and prepaid purchase deposits. The prepayments of construction enterprises mainly include prepayments for construction projects, prepayments for materials, and so on. Prepayments are payments made in advance to suppliers’ customers and are part of the company’s claims.
The accounting community has different views on the treatment of prepaid expenses and prepaid expenses in the new standard, and the Ministry of Finance does not have a clear explanation at present.
One view holds that the treatment of prepaid insurance premiums, prepaid rents of operating leases, and prepaid newspapers and magazines shall be included in the relevant cost or profit and loss categories according to the prepaid amount. It belongs to the management expenses incurred by the administrative department of the enterprise to organize and manage the production and operation activities of the enterprise; it belongs to the production workshop (department) of the enterprise for the production of products or provides labor services. It belongs to the process of selling goods and providing labor services. Included in selling expenses. When prepaying the above amount, debit “administrative expenses”, “manufacturing expenses”, “selling expenses” and other subjects, and credit “bank deposit” and other subjects.
One view holds that due to the prepaid property insurance premiums, prepaid operating lease fixed asset rentals, and prepaid newspaper subscription fees, the expenditures are all prepaid by the enterprise to the service provider according to the corresponding contract, and the nature of the prepaid accounts when purchasing goods and materials. It is the same, so it is more reasonable to calculate through the “accounts in advance” account. At the same time, in order to distinguish it from the prepaid payment for purchasing materials and purchased goods, it can be distinguished through the corresponding sub-ledger.
The accounting entry for prepaid premiums for the entire year is as follows:
Borrow: Prepayment – Insurance Premium
Credit: bank deposit/cash
The accounting entries for the monthly apportionment are as follows:
Borrow: Management Fee – Insurance Fee
Credit: Prepaid Accounts – Insurance Premium
First: It should be borrowed first and then loaned, and the borrower is in the branch, the borrower is on the top, and the lender is on the bottom;
Second: The credit accounting symbol, account, and amount should be back one space from the debit, indicating that the debit is on the left and the credit is on the right.
There are two types of accounting entries: simple entry and compound entry. Simple entry is one debit and one credit entry; compound entry is one debit and multiple credit entry, multiple debits and one credit, and multiple debits and multiple credit entries. entry.
It should be pointed out that, in order to keep the correspondence between accounts clear, it is generally not advisable to combine different economic businesses and prepare accounting entries with multiple borrowings and multiple loans. However, in some special cases, in order to reflect the overall picture of the economic business, accounting entries with multiple borrowings and multiple loans can also be prepared.
Extended information
Corporate social insurance is paid in the current month, and the accounting entry at the beginning of the month is:
Borrow: Payable employee salary – social insurance premium (unit part)
Other receivables — social insurance premiums (individual part)
Loans: Bank Deposits
The accounting entry for the end of the month is:
Borrow: management fee/sales fee/manufacturing fee social insurance fee (unit part)
Loans: Payable to employees, Gong Dun, locusts, moths, and Wei valves — social insurance premiums (unit part)
