How to handle accounting when companies use self-produced products for external donations?

1. The accounting entries for corporate external donations are:

Debit: non-operating expenses

Credit: bank deposits

2. Explanation

1. The appendix of the "Accounting Standards for Business Enterprises - Application Guide" sets up the "Non-operating expenses" account No. 6711 to account for various non-operating expenses incurred by the enterprise, including losses on disposal of non-current assets, non-monetary Asset exchange losses, debt restructuring losses, public welfare donation expenditures, extraordinary losses, losses on losses, etc. Public welfare donation expenditures refer to the expenditures incurred by enterprises in making public welfare donations to external parties.

2. This account is the "loss" in the profit and loss account, and is debited when expenditures occur. At the end of the period, the balance of this account should be entered into the "profit for the year" account, and there will be no balance after the carryover.

Warm reminder: The above information is for reference only.

Response time: 2021-10-27. For the latest business changes, please refer to the official website of Ping An Bank.