Borrow: raw materials, etc. (According to the confirmed value of donated goods)

Taxes payable-VAT payable (input tax)

Loan: non-operating income (according to the fair value including tax of non-monetary assets donated)

Non-monetary public welfare donation

Borrow: non-operating expenses

Loans: Goods in stock

Taxes payable-VAT payable (output tax)

How to deal with charitable donations in tax law;

Confirm deemed sales revenue and deemed sales cost, and increase taxable income with deemed sales revenue;

Calculate the donation limit with accounting profit and compare it with the donation cost (regarded as sales cost+regarded as sales output tax). If the donation cost is higher than the donation limit, the taxable income will be increased.