Accounting entries of automobile 4s shop:

1. Prepaid car payment

Debit: prepayment (amount)

Loan: bank deposit (amount)

2. Receipt of purchase invoice

Debit: inventory goods (amount)

Taxes payable-VAT payable (input tax). Receiving advance payment

Borrowing: bank deposit (amount)

Lending: advance payment-advance payment (amount)

Other payables-collection payment (amount)

2. Invoicing motor vehicles

Borrowing: advance payment-advance payment (amount)

Lending: main business income- Pay insurance premium and purchase tax on behalf of customers

Borrow: other payables-collection (amount)

Loan: cash on hand (amount)

4. Pay insurance premium on behalf of customers

Borrow: other payables-collection (amount)

Loan: bank deposit (amount)

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2. Determine the direction and amount of account borrowing. That is, the borrowing direction, account name and amount must all be available and correct.

3. If there are detailed subjects, you must write them down.

4. Accounting entries are the first step in accounting. When compiling accounting entries, we should pay attention to reviewing original vouchers, rationally using accounting subjects, and paying attention to the balanced relationship between subjects.