Here in Guangdong Province, after the local water conservancy construction fund is accrued by the enterprise, due to the fact that the quarterly operating income of small-scale taxpayers is less than 90,000, the accounting entries for reducing or exempting the local water conservancy construction fund are as follows:

Debit: business tax and surcharges (negative numbers are in red)

Borrow: taxes payable-local water conservancy construction fund.

The reason is that when the local water conservancy construction fund is accrued, the business tax and surcharge of the enterprise are included, so the debit is written off in red.