Fixed asset disposal accounting treatment is a knowledge point that our accountants must master. If you are not clear about the accounting treatment of fixed asset disposal, hurry up and take time to learn it.
Enterprises sell, transfer or scrap fixed assets or cause damage to fixed assets, the amount after deducting book value and related taxes and fees shall be included in the current profit and loss. Fixed assets disposal is generally calculated through the " fixed asset cleaning " account.
Enterprises dispose of fixed assets due to sales, scrapping or damage, foreign investment, non-monetary asset exchange, debt restructuring, etc., generally their accounting treatment goes through the following steps:
1. Fixed assets transfer and cleanup
borrow: Fixed assets cleanup
cumulative depreciation
0 fixed assets impairment provision
loan: Fixed assets
2. Cleaning expenses incurred
debit: Fixed asset cleaning
loan: Bank deposit
3. Sales income
debit: Bank deposit
loan: Fixed asset cleaning
taxes and fees payable - value-added tax payable ( sales tax amount )
4. Insurance compensation and residues
loan: other receivables, raw materials
loan: fixed asset cleaning
5. Clean up net profit and loss
(1) Net loss after fixed asset cleaning is completed
loan: non-operating expenses [Non-current assets damage and scrap loss]
Asset disposal loss Yi [Sale Loss]
Loan: Fixed Asset Cleanup
Where: Profit and Loss of Asset Disposal, reflects the disposal gains or losses recognized when the enterprise sells non-current assets divided into holdings for sale (except financial instruments, long-term equity investments and investment real estate) or disposal group, as well as the disposal gains or losses caused by disposing of fixed assets not divided into holdings for sale, construction projects under construction, productive biological assets and intangible assets.
(2) Net income after the completion of fixed asset cleaning
Debit: Fixed asset cleaning
Credit: Asset disposal profit and loss [Sale income]
Fixed assets are closely linked to the operation of the enterprise and are the guarantee of enterprise production and normal operation. Relevant financial accounting and tax processing will have a significant impact on the enterprise's financial data.