How to write accounting entries when cash is stolen and lost?

If the safety conditions of the enterprise are not comprehensive, it may lead to the theft of the financial room and the loss of all the cash in the safe. How to make relevant accounting entries for stolen and lost cash?

Accounting entries for stolen and lost cash

Property losses belonging to the enterprise caused by cash theft can be deducted before tax. In the final analysis, this is the loss of cash and other property caused by poor management, which must be approved by the tax authorities before it can be deducted when filing enterprise income tax. Therefore, enterprises should submit relevant certification materials to the competent tax authorities for approval before the end of the year.

Borrow: Loss and overflow of pending property.

Credit: Cash on hand

Cashier for approval:

Debit: Other receivables.

Loan: loss and surplus of pending property.

To be undertaken by the Unit:

Borrow: non-operating expenses

Loan: loss and surplus of pending property.

Accounting entries for lost inventory goods

1. Inventory goods were found lost, and the reason was not found out. The accounting entry was:

Debit: loss and surplus of pending property-loss and surplus of pending current assets.

Loans: Goods in stock

2, after approval, for the loss that should be compensated by the negligent person, the accounting entries are:

Debit: Other receivables.

Loan: loss and surplus of pending property-loss and surplus of pending current assets.

3, offset with wages:

Debit: payable to employees.

Credit: other receivables

What is the loss and overflow of pending property?

The pending property losses and surpluses are used to account for the inventory gains, losses and damages of various property materials that have been confirmed by the enterprise in the inventory process. After finding out the reason, there should be no balance in the loss and surplus of the property to be treated.

What are other receivables?

Other receivables refer to all kinds of receivables and temporary payments except financial assets, notes receivable, accounts receivable, prepayments, dividends receivable, interest receivable, subrogation receivables, reinsurance receivables, reinsurance receivables and long-term receivables.

What are the non-operating expenses?

Non-operating expenses refer to all non-operating expenses except the main business cost and other business expenses. Such as fines, donations and extraordinary losses.