Accounting Entries for Consulting Expenses
The accounting entries for the payment of consulting expenses are as follows:
Borrow: Administrative Expenses - Consulting Expenses
Taxes Payable - VAT Payable (Input Tax)
Credit: bank deposits
Attachments: bank statements, invoices, contracts
What are administrative expenses?
Administrative expenses are the various expenses incurred by the administration of an enterprise for the organization and management of production and business activities. Including specific items are: the board of directors and administrative departments in the enterprise management, or should be borne by the enterprise unified company funds, labor union funds, standby insurance premiums, labor insurance premiums, board of directors fees, business hospitality, office expenses, postal and telecommunications costs, green fees, travel expenses, hire intermediaries, consulting fees, litigation costs, management personnel wages and welfare costs, and so on.
Administrative expenses are period expenses and are charged to current loss or gain in the period in which they are incurred.
The debit side of the account to register the management costs incurred by the enterprise, the credit side of the registration of the end of the period transferred to the "profit for the year" account of the management costs, after the carry-over of the account should not have a balance. This account by administrative expenses of the expense items for detailed accounting.
Receipt of consulting fees
Borrow: cash on hand or bank deposits
Loan: main business income
Main business income refers to the business income of an enterprise engaged in the production of business activities in the industry. The main business income includes the manufacturing industry's income from the sale of products, semi-finished products and the provision of industrial labor operations; merchandise distribution enterprises income from the sale of goods; tourism services, ticket income, customer income, catering income and so on.