the accounting of catering companies should take inventory. Because for the catering industry, it is generally necessary to count all kinds of ingredients, which are raw materials in accounting. Then the inventory entries of raw materials are as follows:

1. When raw materials are in surplus:

before approval:

Borrowing: raw materials

Lending: loss and overflow of pending property-profit and loss of pending current assets

After approval:

Borrowing: loss and overflow of pending property-profit and loss of pending current assets

Lending: management expenses

.

(2) Inventory losses caused by natural disasters and other abnormal reasons are included in non-operating expenses.

(3) Indemnities receivable from responsible persons and insurance companies are included in other receivables.

debit: management expenses

non-operating expenses

other receivables

loan: loss and overflow of pending property-gain and loss of pending current assets

accounting coach

accounting treatment of inventory surplus, inventory deficit and damage

1. Inventory surplus

(1) When inventory surplus occurs (before approval) <

Borrowing: loss and overflow of property to be processed

Loan: management expenses

2. Inventory loss and damage

(1) Borrowing: loss and overflow of property to be processed

Loan: tax payable for raw materials/inventory goods

VAT payable (input tax is transferred out).

other receivables (compensation from insurance companies and negligent persons)

management expenses

non-operating expenses (extraordinary losses)

loans: loss and overflow of pending property.