What to do with fixed asset disposal accounting entries

Debit: Fixed asset disposal 40

Accumulated depreciation 10

Credit: Fixed assets 50

Debit: Bank deposit 40

Credit: Fixed Assets Disposal 40

Debit: Fixed asset disposal 1

Credit: Bank Deposit 1

Borrow: Non-operating expenses 1

Credit: Fixed asset disposal 1

Accounting procedures for the disposal of fixed assets:

1) **, scrapped and damaged fixed assets transferred to the liquidation, borrowed: fixed assets liquidation.

Fixed asset book - accumulated depreciation accrued).

Borrow: Accumulated depreciation.

accrued accrual).

Borrow: Provision for impairment of fixed assets.

Accrued impairment provisions).

Credit: Fixed Assets.

The book value of the fixed asset).

2) When the disposal cost is incurred, borrow: fixed assets liquidation.

Credit: Bank deposits.

3) When calculating and paying VAT, the enterprise sells houses, buildings and other immovable properties, in accordance with the relevant provisions of the tax law, it shall calculate and pay VAT according to its sales amount, and borrow: fixed assets liquidation.

Credit: Tax Payable – VAT Payable.

4) When recovering the price, residual material value and valuation income of ** fixed assets.

Borrow: Bank deposit.

Borrow: raw materials, etc.

Credit: Disposal of fixed assets.

5) When compensation should be made by the insurance company or the negligent party.

Debit: Other receivables.

Credit: Disposal of fixed assets.

6) Net income after disposal of fixed assets.

Borrow: Disposal of fixed assets.

Credit: Long-term amortized expenses.

belongs to the preparatory period).

Credit: Non-operating income – net income from the treatment of fixed assets.

belongs to the production and operation period).

7) Net loss after disposal of fixed assets.

Borrow: Long-term amortized expenses.

belongs to the preparatory period).

Borrow: Non-operating expenses – very loss.

It is a loss caused by natural disasters and other abnormal reasons during the production and operation period) borrowed: non-operating expenses - net loss of fixed assets.

It belongs to the normal processing loss during the production and operation period).

Credit: Disposal of fixed assets.

Cost and expense category.

Borrow: Disposal of fixed assets.

Tax Payable – VAT (input tax) payable

Credit: bank deposits, etc.

Income class. Borrow: Bank deposit.

Other receivables, etc.

Credit: Disposal of fixed assets.

Tax Payable – VAT (output tax) payable

Costs and expenses are included in the debit side of fixed asset disposal, income is included in the credit side of fixed asset disposal, and finally the fixed asset disposal is transferred to non-operating income or non-operating expenses.

Extended information: 1. The liquidation of fixed assets is a general term for the identification, scrapping, write-off of assets, and disposal of residual value due to wear and tear, loss of production capacity due to extraordinary disasters and accidents, or obsolescence and obsolescence of fixed assets.

2. The scrapped fixed assets shall be written off directly at the original price of the fixed assets, and when the scrapped fixed assets are cancelled, the "fixed assets" account shall be debited according to the original price, and the "depreciation" account shall be credited according to the accumulated depreciation amount.

3. The debit side registers the net value of fixed assets transferred to liquidation and the expenses incurred in the process of liquidation; The credit registers the price obtained, the residual value and the sale income of the fixed asset. Its credit balance represents the net gain after liquidation; The debit balance represents the net loss after liquidation. After the liquidation is completed, the net income is transferred to the "non-operating income" account; The net loss is transferred to the "non-operating expenses" account.

1. Transfer the fixed assets to liquidation, and the specific accounting entries are:

Borrow: Disposal of fixed assets.

Accumulated depreciation. Impairment loss on fixed assets.

Credit: Fixed Assets.

2. When the cost of liquidation of fixed assets is incurred, the specific accounting entries are:

Borrow: Disposal of fixed assets.

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

3. Profits are realized when disposing of fixed assets, and the specific accounting entries are:

Borrow: Bank deposit.

Credit: Disposal of fixed assets.

Tax Payable – VAT payable (output tax).

If the remaining residual material is put into storage or if you receive an insurance claim:

Borrow: Raw materials (residual material storage).

Other receivables (the portion that should be reimbursed by insurance).

Credit: Disposal of fixed assets.

When the net profit or loss is cleared, if the net income is realized from the disposal of fixed assets:

Borrow: Disposal of fixed assets.

Credit: Non-operating income - gains on disposal of illiquid assets (gains from scrapping and damage) gains and losses on disposal of assets (gains on normal**, gains on transfers).

Net loss on disposal of fixed assets:

Borrow: Non-operating expenses - loss on disposal of illiquid assets (loss caused by scrapping and damage) Gain or loss on disposal of assets (loss on normal**, transfer).

Credit: Disposal of fixed assets.

The liquidation of fixed assets is a general term for the identification, scrapping, write-off of assets, disposal of residual value and other work that has lost production capacity due to wear and tear, suffered from extraordinary disasters and accidents, or has to be eliminated and updated due to obsolescence and obsolescence. When an enterprise disposes of fixed assets, it should be accounted for through the "Disposal of Fixed Assets" account.

1. In the accounting treatment of fixed assets liquidation, the fixed assets that are scrapped and damaged are first transferred to the fixed assets liquidation.

2. Calculate the expenses incurred in the liquidation of fixed assets, and transfer the taxes and fees payable to the liquidation of fixed assets.

3. Transfer the price, residual material value and valuation income of recovered fixed assets to the disposal of fixed assets.

Disposal of fixed assets, accumulated depreciation, credit: fixed assets; 2. When the clean-up costs are incurred: borrow:

Liquidation of fixed assets, credit: bank deposits, taxes payable, etc.; 3. Income from disposal: borrowed

1. First of all, the fixed assets are transferred to the liquidation.

Borrow: Disposal of fixed assets.

Provision for impairment of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

2. Clean-up costs and related taxes incurred.

Borrow: Disposal of fixed assets.

Credit: Bank deposits.

Taxes and fees due. 3. Recover the residual material or ** price or insurance compensation.

Borrow: raw materials,

Bank deposits, other receivables.

Credit: Disposal of fixed assets.

4. Carry forward the net profit and loss.

In the event of a loss, borrow: non-operating expenses.

Credit: Disposal of fixed assets.

If it is an income, borrow: fixed asset disposal.

Credit: Non-operating income.

Extended Material: Fixed Asset Disposal.

The liquidation of fixed assets is a general term for the identification, scrapping, write-off of assets, and disposal of residual value of fixed assets that need to be eliminated and updated due to wear and tear, extraordinary disasters and accidents, or due to obsolescence and obsolescence. After technical appraisal and economic evaluation, the fixed assets are confirmed to be scrapped and transferred to liquidation, which indicates that the fixed assets are withdrawn from the production and operation process of the enterprise, and the original fixed capital investment is reduced.

In order to ensure the simple reproduction of fixed assets, their depreciation should be equal to the amount of depreciation due. If the fixed assets are scrapped in advance and the depreciation is not fully provided, in principle, the full amount should be paid. However, the fixed assets that are scrapped in advance due to poor management of the enterprise will not be repaid for depreciation if they have not been fully depreciated.

When the scrapped fixed assets are written off, the "fixed assets" account is credited according to the original price, and the "depreciation" account is debited according to the accumulated depreciation amount.

1. First of all, the fixed assets are transferred to the liquidation.

Borrow: Disposal of fixed assets.

Provision for impairment of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

2. Clean-up costs and related taxes incurred.

Borrow: Disposal of fixed assets.

Credit: Bank deposits.

Taxes and fees due. 3. Recover the residual material or ** price or insurance compensation.

Borrow: raw materials,

Bank deposits are prudent

Other receivables.

Credit: Disposal of fixed assets.

4. Carry forward the net profit and loss.

In the event of a loss, borrow: non-operating expenses.

Credit: Disposal of fixed assets.

If it is an income, borrow: fixed asset disposal.

Credit: Non-operating income.

The liquidation of fixed assets refers to the scrapping and loss of fixed assets, as well as the liquidation of fixed assets that have been damaged and lost due to various force majeure natural disasters.

1. When the scrapped and damaged fixed assets are transferred to the liquidation

Debit: Fixed asset disposal (the book value of fixed assets transferred to disposal).

Accumulated depreciation (depreciation accrued).

Provision for impairment of fixed assets (provision for impairment that has been made).

Credit: Fixed assets (original book value of fixed assets).

2. When the clean-up costs are incurred:

Borrow: Disposal of fixed assets.

Credit: Bank deposits.

3. When calculating and paying taxes:

Borrow: Disposal of fixed assets.

Credit: Taxes payable.

4) When recovering the price, residual material value and valuation income of ** fixed assets.

Borrow: Bank deposit.

raw materials, etc. Credit: Disposal of fixed assets.

5) When compensation should be made by the insurance company or the negligent party.

Debit: Other receivables.

Credit: Disposal of fixed assets.

6) Net income after disposal of fixed assets.

Borrow: Disposal of fixed assets.

Credit: Long-term amortized expenses (belonging to the preparation period).

Non-operating income - net income from fixed assets (belonging to the period of production and operation).

7) Net loss after disposal of fixed assets.

Borrow: Long-term amortized expenses (belonging to the preparation period).

Non-operating expenses - extraordinary losses (losses caused by natural disasters and other abnormal reasons during production and operation).

Non-operating expenses - net loss of fixed assets (which is a normal loss of disposal during production and operation).

Credit: Fixed capital and fierce production clearance.

How to understand non-operating income and non-operating expenses?

1. Non-operating income refers to the various gains that are not directly related to the daily activities of the enterprise, which mainly include the gains from the disposal of non-current assets, the profits from the inventory, the subsidies for the lead bridge, the profits from donations, the gains from the exchange of non-monetary assets, and the gains from debt restructuring. When an enterprise recognizes non-operating income, it debits the accounts of "disposal of fixed assets", "bank deposits", "cash in hand", "accounts payable" and credits the "non-operating income" account. At the end of the period, the balance of the "Non-Operating Income" account is transferred to the "Profit this year" account, the "Non-operating income" account is debited, and the "Profit this year" account is credited.

2. Non-operating expenses refer to the losses incurred by the enterprise that are not directly related to its daily activities, mainly including losses on disposal of non-current assets, inventory losses, fines, public welfare donation expenses, non-monetary asset exchange losses, debt restructuring losses, etc. When an enterprise incurs non-operating expenses, the "non-operating expenses" account is debited and the "fixed assets disposal", "property loss and excess to be disposed of", "cash in hand", "bank deposits" and other accounts are credited. At the end of the period, the balance of the "Non-operating expenses" account is transferred to the "Profit this year" account, the "Profit this year" account is debited, and the "Non-operating expenses" account is credited.