in the catering industry, in order to open a business smoothly, discounts on meals or membership cards will be used to attract customers to spend and make profits. So how do you write the specific accounting entries for the opening activity fee of the restaurant?

accounting entries for restaurant opening expenses

debit: long-term prepaid expenses/management expenses

credit: bank deposits

what is long-term prepaid expenses?

Long-term deferred expenses are expenses that the account is used to account for the expenses that the enterprise has spent, but the amortization period is more than 1 years (excluding 1 years), including expenses for repairing fixed assets, expenses for improving rented fixed assets and other deferred expenses with amortization period of more than 1 years.

an enterprise should set up a subsidiary ledger according to the types of expenses, make detailed accounting, and disclose its amortized value, amortization period and amortization method according to the expense items in the notes to the accounting statements.

what is administrative expenses?

management expenses refer to various expenses incurred by the administrative department of an enterprise for organizing and managing production and business activities.

enterprises should account for the occurrence and carry-over of management expenses through the subject of "management expenses". The debit of this account registers the management expenses incurred by the enterprise, and the management expenses transferred to the "profit of this year" account at the end of the credit registration period. After the transfer, there should be no balance in this account. This subject is accounted for in detail according to the expense items of management expenses.

what is a bank deposit?

Bank deposit is the money stored in the bank, which is an integral part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank for deposit, withdrawal and transfer settlement, and the monetary funds of the enterprise must be deposited in the bank except for a small amount of cash within the prescribed limit.