Fixed assets are basically an asset that every enterprise will have. Fixed assets are recorded that is what every accounting baby will definitely encounter. Fixed assets have a long service life, and many situations may be encountered during their life cycle. Therefore, there are many accounting treatments for fixed assets. Today, let’s sort out what entries will be encountered in the entire life cycle of fixed assets.
1. Obtain fixed assets
(1) Purchase fixed assets
Debit: Fixed assets Excluding tax price
Debit: VAT payable - input tax amount
Credit: Bank deposits Tax included
In addition, according to regulations, the new real estate will be deducted 60% of the input tax deducted in the current period, and the remaining 40% will be deducted in the 13th month. Therefore, the following entry should be made:
Debit: VAT to be paid. Input tax to be deducted Tax * 40%
Credit: VAT to be paid. Input tax to be transferred out of Tax * 40%
Wait for the 13th month, the remaining 40% input can be deducted. Next, the following entry:
Debit: VAT to be paid. Input tax Tax * 40%
Credit: VAT to be deducted. Input tax Tax amount * 40%
(Note: The input tax of fixed assets obtained through various methods needs to be deducted in two years, the entries are the same as above, and the following entries will not be repeated)
(2) Construction of fixed assets
Debit: Under construction project
Loan: Project materials , employee salary payable, etc.
After the under construction project reaches its usable state, the solid processing will be carried out:
Debit: Fixed assets
loan: under construction project
(3) Investors invest in fixed assets
debit: fixed assets
loan: paid-in capital
(4) Fixed assets taken from debt restructuring
debit: fixed assets
debit: bad debt reserve
debit: non-operating expenses. debt restructuring loss
credit: accounts receivable
(5) non-monetary assets exchange fixed assets obtained by (taking the exchange of inventory as an example)
debit: fixed assets
loan: main business income
loan: VAT payable. Deemed as sales
at the same time, carry forward main business cost
debit: main business cost
loan: inventory
ml32. Depreciation of fixed assets
At the end of each accounting period, according to the selected depreciation method, the depreciation is set aside :
Debit: Management expenses. Depreciation fee , etc.
Credit: Cumulative depreciation
3, Fixed assets impairment
Debit: Asset impairment loss
Credit: Fixed assets impairment provision
4, fixed assets profit , loss
fixed assets profit rush should be treated as previous error:
Debit: Fixed assets
Credit: Previous years profit and loss adjustment
fixed assets loss , processed through the " pending property profit and loss " account, when the market loss is:
Debit: Pending property profit and loss
Debit: Accumulated depreciation
Debit: Fixed asset impairment provision
Credit: Fixed asset
When the reason is found, after approval:
Debit: Non-operating expenditure
Debit: Other receivables (such as responsible persons, insurance compensation, etc.)
Credit: Pending property profit and loss
5, Fixed asset disposal
First, transfer fixed assets to Fixed Asset Cleanup Account:
Debit: Fixed Asset Cleanup
Debit: Cumulative Depreciation
Debit: Fixed Asset Impairment Preparation
Credit: Fixed Assets
Second, if disposal expenses (income), it will also be included in "Fixed Asset Cleanup":
Debit: Fixed Asset Cleanup
Credit: Bank Deposits, etc. tml0 or
Debit: Bank deposit
Credit: Fixed asset cleaning
Credit: VAT payable. Sales tax
Finally, the balance of "fixed asset cleaning" is carried over to profit and loss:
Debit: Non-operating expenses
Credit: Fixed asset cleaning
or
Debit: Fixed asset cleaning
Debit: Fixed asset cleaning
Credit: Non-operating income
