What Is Beginning Inventory?

Opening inventory is the book value of inventory (such as: goods, materials, or raw materials) available for sale or sale at the beginning of an inventory accounting period.

Opening inventory

Right!

Opening inventory is the amount of inventory (such as goods, materials, or materials) available for use or sale at the beginning of an inventory accounting period.

According to the state's regulations on the connection between the new and old tax systems of turnover tax, etc., the relevant accounting treatment regulations are as follows:

Opening inventory treatment of the company's opening stock tax

The Ministry of Finance (93) Caihui Mingxuan Chuan No. 10 "Supplementary Notice on Accounting for VAT" has required enterprises to settle the balance of various types of inventory used for VAT taxable items at the beginning of the period, which shall be deducted in accordance with regulations. The deduction of the input tax amount at the beginning of the period is transferred to the account of "Amortization Expenses-Input Tax at the beginning of period". This part of the amount should be handled in the following two cases:

1. According to the regulations, the balance of the book "Taxes to be deducted" on December 31, 1993 can be transferred to the input tax amount of 1994 and can continue to be deducted. The enterprise shall transfer the portion that can be deducted according to the provisions of the "Amortized Expenses-Input Tax at the Beginning of the Period" according to regulations, and transfer it to the "Tax Payable-VAT payable (input tax)" (small-scale enterprises Enter the "Taxes payable-VAT payable" account), debit the "Taxes payable-VAT payable (input tax)" account (small-scale enterprises debit "Taxes payable-VAT payable" Account), credit the "Amortization Expenses-Input Tax at the Beginning of the Period" account.

2. For the amount of other enterprises that have been transferred to the "Amortized Expenses-Input Tax at the Beginning of the Period" account, when the state has a clear stipulation that it can be deducted, the deductible portion will be calculated according to the regulations and the "deductible tax The subject of "Value Added Tax (input tax) payable" is credited to the subject of "Amortization Expenses-Input Tax at the Beginning of the Period".

Handling of additional consumption tax on stock gasoline and diesel at the beginning of the period

1. If an enterprise operating petrol and diesel pays the consumption tax for its inventory and gasoline and diesel in transit as of December 31, 1993, the supplementary consumption tax shall be included in the inventory at the beginning of the year and the cost of goods in transit, debiting "inventory goods" , "Commodity procurement" and other subjects, credit "tax payable-consumption tax payable" subjects.

If the enterprise has received the purchase price, deposit, etc. from the purchaser before December 31, 1993, the sales tax shall be paid in accordance with the regulations, and shall be handled in accordance with the above regulations.

2. If the sales processing has been done before December 31, 1993, the sales tax shall be paid by the seller in accordance with regulations. The supplemented sales tax shall be treated as the receivable of the purchaser, and debit "accounts receivable" For other subjects, credit the subject of "Taxes payable-consumption tax payable". The purchaser shall include the consumption tax reimbursed by the seller to the cost of goods inventory.

3. The entrusted consignment of gasoline and diesel shall be replaced by the consignee for the consumption tax. The consignee shall pay the consumption tax, debit the item of "consignment of consignment goods" and credit the account of "consignment of goods for consignment". For other subjects, credit the subject of "Taxes payable-consumption tax payable". The entrusting party shall include the supplementary consumption tax in the cost of gasoline and diesel in this part, debit the "stock commodity-commissioned merchandise sales" account, and credit the "accounts receivable" and other subjects.

4. When the enterprise pays the consumption tax, debit the account of "tax payable-consumption tax payable" and credit the account of "bank deposit".