The decoration fee of the rented store can be directly included in the current profit and loss if the amount is not large:

Borrow: management fee-decoration fee

Loan: bank deposit

If the amount is large, It should be amortized according to the expected useful life:

Borrowing: long-term deferred expenses

Lending: bank deposits

Amortization every month is as follows:

Borrowing: management expenses-amortization of decoration expenses

Lending: long-term deferred expenses

Extended information:

1. This account accounts for what has happened in the enterprise but should be amortized by the current period and.

2. This course should be accounted for in detail according to the expense items.

3. The long-term prepaid expenses incurred by the enterprise shall be debited to this account, credited to relevant accounts, and credited to "bank deposits", "raw materials" and other subjects. Amortize long-term prepaid expenses, debit "management expenses", "sales expenses" and other subjects, and credit this account.

iv. the debit balance at the end of this account reflects the amortized value of the long-term deferred expenses that have not been amortized by the enterprise.

Baidu Encyclopedia-Long-term prepaid expenses