1. If the Accounting System for Business Enterprises is implemented, the accounts payable that cannot be paid are directly transferred to the capital reserve, and the accounts payable are debited and credited to the capital reserve-other capital reserves. However, the tax law stipulates that accounts payable that cannot be paid should be used as other income items to increase taxable income.

2. Implement the Accounting Standards for Business Enterprises and directly transfer it to non-operating income.

Second, institutions.

Accounts payable that cannot be paid are transferred to the public welfare fund and the income tax payable is calculated.

Debit: accounts payable

Loan: public fund (write-off amount of accounts payable-income tax payable)

Loan: Taxes payable-Income tax payable