How are the kitchen facilities of the staff canteen included in the fixed assets?

In accordance with the Accounting Standards for Business Enterprises No. 4 - Fixed Assets.

If your company's canteen is not operated externally, it can be directly included in the "management expenses - employee benefits" account.

If it is operated externally, it should be treated as fixed assets and included in the "fixed assets" account.

The kitchen facilities of the canteen are included in the fixed assets, and the depreciation is included in the welfare expense entry

Borrow: Fixed Assets - Kitchen Facilities.

Credit: Cash (deposits).

Accrual of depreciation: borrowed: depreciation.

Credit: Welfare expenses payable.

The canteen built with employee welfare expenses should be recorded in the fixed assets account, and included in the normal asset management of the enterprise, and the real estate tax should be paid in accordance with the provisions of the tax law. At the same time, depreciation can be accrued in the accounting treatment of this part of the assets, but it cannot be deducted before tax, because the accrued welfare expenses payable have been deducted from the current profit in the accrual link, and will no longer be deducted before tax, otherwise it will be a double deduction.

The kitchen facilities of the staff canteen are included in the fixed assets, and other expenses are included in the welfare expenses.

Fixed assets are debited at the time of initial purchase.

In subsequent measurements, the expense (or cost) - benefit expense is debited.

The kitchen facilities of the canteen are included in the fixed assets, and the depreciation is included in the welfare expense entry

Borrow: Fixed Assets - Kitchen Facilities.

Credit: Cash (deposits).

Accrual of depreciation: borrowed: depreciation.

Credit: Welfare expenses payable.