Accounting entries why fixed asset liquidation ends up on the debit side

There are several steps in the accounting entries for the disposal of fixed assets:

1. Transfer the fixed assets to be disposed of into the liquidation entries.

Borrow: Disposal of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

2. When the clean-up costs are incurred:

Borrow: Disposal of fixed assets.

Credit: bank deposits, taxes payable, etc.

3. Income from disposal.

Credit: Disposal of fixed assets.

Fourth, if there is insurance, insurance compensation should be handled.

5. Clean up the net profit and loss.

1. If it is net income.

Borrow: Disposal of fixed assets.

Credit: Non-operating income.

2. If it is a net loss.

Borrow: Non-operating expenses.

Credit: Credit: Disposal of Fixed Assets.

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

The disposal of fixed assets belongs to the asset class account, which is a transitional account, and before the completion of all the liquidation work, the income and losses incurred due to the liquidation, the income lender and the loss borrower are recorded. Finally, the total credit is used to subtract the total debit, which is positive for profit and negative for loss.

Fixed asset disposal "The last balance should be turned to.

The question. Answer.

The first three steps are the disposal of fixed assets.

The amount of debits incurred. For.

Disposal of fixed assets.

The amount of debits incurred. For.

Disposal of fixed assets.

Credit incurred. For.

The first three steps. Disposal of fixed assets. Credit balance.

000 yuan. Therefore, the fourth step is the liquidation of fixed assets.

to be on the debit side. Roll out.

000 yuan, like this.

Disposal of fixed assets.

The balance is 0

Fixed asset disposal means in debit representationThe debit side of the disposal of fixed assets registers the net value of the fixed assets transferred to the disposal and the expenses incurred in the process of liquidationThe 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. Scrapped or **, go to the disposal of fixed assets: the disposal of fixed assets into the liquidation, for appropriate disposal of profit and loss. ”

There will be net losses and net income after the liquidation of fixed assets. That is to say, it refers to the external placement of a fixed asset by the enterprise, (the original value of the fixed asset - the accumulated depreciation accrued - the impairment provision accrued - the disposal cost at the time of disposal + the income and residual materials obtained at the time of disposal), and then it is known whether the enterprise disposes of the fixed asset as a loss or a gain.

In this case, the loss or gain is the net loss of fixed assets and the net income of fixed assets of liquidation. The carry-over here refers to the transfer of the balance of the disposal of fixed assets to the income or expenditure when disposing of fixed assets.

For example, after approval, an old truck (original value of 150,000, depreciation of 116,700,000,) has been deposited in the bank for 40,000 yuan**, and the relevant business tax has been paid.

1. **Time:

Debit: Disposal of fixed assets 33,300, accumulated depreciation of 116,700. Credit: Fixed assets 150,000

2. When recovering the price of ** fixed assets:

Debit: Bank deposit 40000. Credit: Fixed assets disposal 40,000

3. When calculating and paying business tax:

Debit: Fixed asset disposal 2000. Credit: Tax payable--- business tax payable 2000

4. Net income after the liquidation of fixed assets:

Debit: Fixed asset disposal 4700. Credit: non-operating income --- the treatment of fixed assets with the Department net income 4700

The debit side of the liquidation of fixed assets is the net value of the fixed assets transferred to the liquidation and the expenses incurred in the process of clearing the reputation; The credit registers the price obtained, the residual value and the sale income of the fixed asset. Its rolled-over credit balance represents the net proceeds 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.

Accounting processing. 1) **, scrapped and damaged fixed assets transferred to the liquidation, borrowed: fixed assets liquidation **into the liquidation of fixed assets book value).

Accumulated depreciation (depreciation accrued).

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

Credit: Fixed asset (book value of fixed asset).

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

Credit: Bank deposits.

3) When calculating and paying business tax, if an enterprise sells real estate such as houses and fictitious buildings, it shall calculate and pay business tax according to its sales amount in accordance with the relevant provisions of the tax law, and borrow: disposal of fixed assets.

Credit: Tax Payable - Business Tax Payable.

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

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

The debit side of the disposal of fixed assets registers the net value of the fixed assets transferred to the disposal and the expenses incurred in the process of liquidationThe 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. When filling in the balance sheet, for fixed asset items, the debit balance of fixed asset disposal is added and the credit balance of fixed asset disposal is subtracted.

The debit side represents the fixed assets transferred to the liquidation group, and the credit side indicates the fixed assets transferred out to be liquidated, so the debit side indicates the increase and the credit side indicates the decrease. In fact, the fixed assets disposal account also belongs to fixed assets, but it is transferred to the liquidation, but when it is listed, it is reflected together with the fixed assets.

In the process of dealing with fixed assets, enterprises generally account for fixed assets through fixed asset disposal, accumulated depreciation and other accounts.

Accounting entries for fixed asset disposal.

1. Transfer the fixed assets to be disposed of into liquidation

Borrow: Disposal of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

2. When the clean-up costs are incurred:

Borrow: Disposal of fixed assets.

Credit: bank deposits, taxes payable, etc.

3. Income from disposal.

Borrow: Bank deposit.

Credit: Disposal of fixed assets.

Fourth, clean up the net profit and loss.

1. If it is net income.

Borrow: Disposal of fixed assets.

Credit: Non-operating income.

2. If it is a net loss.

Borrow: Non-operating expenses.

Credit: Disposal of fixed assets.

What is Fixed Asset Disposal?

The liquidation of fixed assets is a general type of suspicion for the identification, scrapping, write-off of assets, and disposal of residual value due to wear and tear, extraordinary disasters and accidents, which have lost production capacity due to loss of production capacity, 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. 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 credited according to its original price, and the "accumulated depreciation" account shall be debited according to the accumulated depreciation amount.

Enterprises are not only goods, but also fixed assets in some cases. Generally, after the sale of fixed assets, enterprises should clean up and account for fixed assets, so how to do the accounting entries for fixed asset disposal?

Accounting entries for fixed asset disposal.

1. Transfer the fixed assets of ** to the liquidation.

Borrow: Disposal of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

2. Fixed assets**.

Borrow: Bank deposit.

Credit: Disposal of fixed assets.

3. Pay for the clean-up.

Borrow: Disposal of fixed assets.

Credit: bank deposits, etc.

4. When the tax is calculated according to the sales amount.

Borrow: Disposal of fixed assets.

Credit: Tax Payable - VAT Payable.

5. Carry forward the loss and excess of fixed assets.

1) **When fixed assets are net income.

Borrow: Disposal of fixed assets.

Credit: Non-Operating Income - Net Income from Disposal of Fixed Assets.

2) **When the fixed assets are net losses.

Borrow: Non-operating expenses - net loss on disposal of fixed assets.

Credit: Disposal of fixed assets.

What is Fixed Assets?

Fixed assets refer to non-monetary assets held by enterprises for the purpose of producing products, providing and burying them for labor services, leasing or operation and management, and have been used for more than 12 months, and the value reaches a certain standard, including houses, buildings, machines, machinery, means of transportation and other equipment, appliances and tools related to production and business activities.

What is Fixed Asset Disposal?

The disposal of fixed assets belongs to the asset class account, which is used to account for the net value of fixed assets transferred to the liquidation due to **, scrapping and damage, as well as the liquidation expenses and liquidation income incurred in the liquidation process.

What are non-operating expenses?

Non-operating expenses refer to non-operating expenses other than the cost of principal business and other operating expenses. Such as fine expenses, donation expenses, extraordinary losses, etc. To do this, set up a "Non-Operating Expenses" account to account for this part.

When the enterprise incurs various business empty outward expenses, it shall be debited to this account; When the profit or loss is carried forward at the end of the period, it is transferred from the credit to the debit side of the "Profit for the Year" account, and there is no balance in the account after the carryover.