It will be more cost-effective for enterprises to purchase goods during the promotion activities in shopping malls than usual. When purchasing promotional gifts, you can charge to an account according to the inventory items. How to make relevant accounting entries?

Purchase promotional gifts's accounting entries at the mall.

1, buy promotional gifts

Borrow: inventory goods

Taxes payable-VAT payable (input tax)

Loans: bank deposits

2. Free promotional gifts

Debit: sales expenses

Loans: Goods in stock

Taxes payable-VAT payable (output tax)

The recipient of the gift:

Borrow: inventory goods

Loan: non-operating income

How to deal with the vouchers given by the mall?

When giving:

Debit: sales expenses

Loans: estimated liabilities

When withdrawing a shopping voucher:

Debit: estimated liabilities

Loan: income from main business

Taxes payable-VAT payable (output tax)

Accounting entries for purchasing gifts

1. Gifts and articles are included in the sales expenses (including the transfer of input tax).

Debit: sales expenses-business promotion expenses

Loans: Goods in stock

Taxes payable-VAT payable (transfer-out input tax)

2. Pay personal income tax (it is impossible for an enterprise to ask the donee to pay a tax when giving gifts, but it can only pay it by itself).

Debit: sales expenses-business promotion expenses

Loans: bank deposits

3. If the gifts and articles presented are products produced by the enterprise itself, they will be treated as sales and listed as promotional expenses:

(1) When giving gifts and articles,

Debit: sales expenses-business promotion expenses

Loan: income from main business

Taxes payable-VAT payable (output tax)

(2) Carry forward the cost of sales

Debit: main business cost

Loans: Goods in stock