How to account for membership card recharge?
1, membership card recharge card recharge accounting entries:
Borrow: bank deposits (or cash on hand)
Loan: advance receipts
2, membership card recharge amount of consumption of accounting entries:
Borrow: advance receipts
Loan: the main business income
Taxes and fees payable - payable value-added tax- Sales tax
The discount on top-up is treated as a commercial discount and is directly offset against the recorded amount of main business income.
Main business income refers to the business income earned by enterprises engaged in the production and operation activities of the industry. The main business income includes the income from the sale of products, semi-finished products and the provision of industrial labor operations in the manufacturing industry; the income from the sale of goods in the commodity distribution enterprises; the ticket income, customer income, catering income in the tourism service industry.
What are advance receipts?
Advance receipts are deposits or part of the purchase price received in advance by an enterprise from the purchaser of goods. The advance receipts are to be offset when the enterprise actually sells the goods, products or provides labor services. Advance receipts is based on the agreement or contract between the buyer and seller, the purchaser pays a part (or all) of the purchase price in advance to the supplier and a liability is incurred, this liability to be paid in future goods or services.
When the enterprise receives this money, the contract for the sale of goods or services has not yet been fulfilled, so it can not be recorded as income, but can only be recognized as a liability, i.e., credited to the "advance receipts" account.
After the enterprise provides goods or services according to the contract, then according to the performance of the contract, period by period, the unrealized income will be converted into realized income, i.e., debit the "advance receipts" account, credit the relevant income account.
The presentation of accounts receivable in advance is based on the nature of the balance, debited to accounts receivable as an asset and credited to accounts receivable as a liability.