What is a Write-Off?

Reversal is the concept of accounting, which means the offsetting of each other, that is, offsetting the wrong accounting records to eliminate each other within the same amount. In simple terms, it is to make an opposite accounting entry according to the original entry, or to make an identical red letter entry, to cancel the original account or to clear the subjects that have already been recorded.

[chng xio]

Reversal is the concept of accounting, which means the meaning of offsetting each other, that is, to the wrong

1: Less the amount of partial or complete loss of book value. Example: write off obsolete inventory from books.

2: Sell the previously purchased futures and securities on a commodity exchange or stock exchange.

3: "Neutralization intervention" is also called sterilization intervention. It is one of the important government's policies to manage exchange rate, also called sterilization policy. After the central bank intervened in the foreign exchange market, it used write-off measures to compensate for the impact on the money supply.

Words are interpreted separately :

Punch : chng Pouring with water or wine, water impact: tea. Granules. rinse. Dashing.

Drill up and straight up: Rush.

Pin : xio Molten metal: gold. destroy.

Removed: Cancel the case. Write off. Stolen. Ecstasy. Erosion. Disappeared.

1. In account processing, write-off is the two factors that are the same for the same reason, but the two entries formed due to accounting errors are hedged in order to complete the original error processing work and find the mismatch And the corresponding subjects, and then hedging the wrong subjects positive and negative, and then do the right, such as "+1" and "-1" is a hedge, it is flat, everything is zero, and then do The correct entry leveled the account.

2. "Neutralization intervention" is also called sterilization intervention. It is one of the important policies of the government to manage the exchange rate. It means that the central bank trades foreign and domestic assets in equal amounts but in opposite directions to offset the impact of foreign exchange intervention on the domestic money supply. The effects of sterilization and non-sterilization of foreign exchange intervention are as follows: When the central bank purchases foreign assets but does not perform the sterilization, the central bank's foreign assets and domestic money supply increase at the same time, and the central bank's domestic assets remain unchanged; When the central bank purchases foreign assets and offsets them, the central bank's foreign assets increase, domestic assets decrease, and the domestic money supply remains unchanged. When the central bank sells foreign exchange but does not write off, the central bank's foreign assets and domestic money supply decrease simultaneously, and the central bank's domestic assets remain unchanged; when the central bank sells foreign exchange and writes off, the central bank's foreign assets decrease and domestic As assets increase, the domestic money supply remains unchanged.

First of all, the invoice has not arrived, but this business has occurred in the current month. According to the accrual system, it must be reflected in the current month, so it is valued first.

Borrow: Raw materials 50000

Loan: accounts payable 50000

When the invoice is received next month, with the correct price, the original valuation should be written off in red (in fact, it is registered with a negative number to offset the original valuation)

Borrow: Raw materials 50000

Loan: accounts payable 50000 (numbers are registered in red letters)

This step can actually be replaced by an opposite blue entry.

Ie: Borrow: Accounts payable: 50000

Loan: Raw materials: 50000

Entries are then prepared based on the invoices received:

Borrow: Raw materials: 50000

Tax payable-VAT payable-input tax: 8500 (ie 50000 * 0.17)

Loan: Accounts payable: 58500