How To Account For A Subscription

Table of contents:

How To Account For A Subscription
How To Account For A Subscription

Video: How To Account For A Subscription

Video: How To Account For A Subscription
Video: CAMBRIDGE IGCSE ACCOUNTS 0452 - Subscriptions account + solved past papers 2024, December
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It is customary in organizations to subscribe to periodicals. They can be highly specialized in nature due to production needs. For example, fashion magazines with images of different hairstyles would be appropriate in hairdressing salons in order to facilitate the client's choice. Such glossy publications in a real estate office will already perform an entertainment function. How do I post a subscription?

How to account for a subscription
How to account for a subscription

Instructions

Step 1

Justify the need to purchase certain books or periodicals for the organization. To do this, determine how much they are related to the activities of the institution. For example, a law firm needs legal journals. Construction - in the collections of building codes. And each of them will need prints with laws and regulations and accounting.

Step 2

Buy non-professional subscriptions with net income. Otherwise, when checking such literature, the tax office will charge fines and penalties. Take the cost of these publications together with VAT to account 91, subaccount 91-2 to other expenses.

Step 3

When receiving each issue of a newspaper or magazine, take into account its cost on account 10 "Materials" - debit of account 10, credit of account 60. Then write off to expenses for ordinary activities - debit of account 20 (26), credit of account 10. For electronic publications, receiving act and invoice, write off their cost as expenses without writing to account 10.

Step 4

Consider the costs of the necessary periodicals in other ones related to production and sale. In this case, several subscriptions can be combined on similar topics and counted together.

Step 5

VAT is deducted as follows. First, receive an invoice from the publisher with the allocated amount of VAT on the advance and deduct it. Typically, an invoice is placed in each issue of the publication, so accept VAT on each specific issue. If periodicals arrive daily, then issue them in one invoice once a quarter or a month.

Step 6

Business literature is recorded on account 10 "Materials" as part of the inventories. Write it off as an expense when transferring it to the department in which it will be used, for normal activities on accounts 44, 26, 20, etc. It will not be depreciated regardless of cost. Include the cost of purchasing such a subscription among others.

Step 7

Accept VAT deduction on book products if they are registered with a correctly filled invoice; used for activities that are subject to VAT.

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