During the establishment and registration of a new company, a series of expenses will be incurred. Since it has not yet officially opened for business, these expenses can be accounted for through the start-up expense account, and all of them will be recorded into the management expense account at once for processing when the company opens. So how to write the accounting entries for the expenses during company registration?

Accounting processing of expenses during company registration

1. Industrial and commercial registration fees should be included in the start-up expenses

Debit: long-term deferred expenses - start-up expenses< /p>

Debit: bank deposit/cash

2. If the company changes certain matters after its opening, it needs to be re-registered and included in the management expenses

Debit: management expenses—— Office expenses

Debit: bank deposits/cash

3. Registering a trademark or patent should be included in intangible assets

Debit: intangible assets - —XX trademark rights (or ×× patent rights)

Loan: bank deposits/cash

4. The company opens a branch or invests in a subsidiary, and registers a branch or investment subsidiary , the registration fee shall be borne by the company headquarters

Debit: management expenses - office expenses

Credit: bank deposit (or cash)

5. The company opens a branch Or invest in a subsidiary, register a branch or investment subsidiary (the registration fee shall be borne by the branch or subsidiary)

Debit: Other receivables - ×× branch (or ×× subsidiary)

Loan: bank deposit (or cash)

Large amount of decoration expenses are also included in long-term deferred expenses

Debit: long-term deferred expenses - - Decoration fee

Credit: Bank deposit

Amortized in installments after completion

Debit: Management expenses - Decoration fee

Loan : Long-term deferred expenses---decoration expenses

When the company goes bankrupt, what should we do if the long-term deferred expenses have not been amortized? According to relevant regulations, there is still a balance of long-term deferred expenses. When the enterprise cancels, the balance of the "prepaid expenses" account that has not yet been amortized will be transferred to the "liquidation profit and loss" account.

Debit: Non-operating expenses

Credit: Long-term deferred expenses