Whether the inventory gain on fixed assets is a profit or loss on property to be disposed of or an a

In the previous year, the "profit" adjustment and the "overflow" of the property loss to be disposed of are not the same word.

In accordance with the provisions of the Accounting Standards for Business Enterprises].

Discovery Profit (Pre-Approval):

Borrow: Fixed assets.

Credit: Prior Year Profit and Loss Adjustment.

Processing Profit (Post-Approval):

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable – Income Tax Payable.

Surplus reserve. Profit distribution – undistributed profits.

According to the provisions of the "Accounting System for Small Enterprises".

Discovery Profit (Pre-Approval):

Borrow: Fixed assets.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

Processing Profit (Post-Approval):

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Credit: Non-operating income.

Note] When the title does not specify which regulations to use, we generally use the Accounting Standards for Business Enterprises to do accounting treatment.

Example] After being approved to handle an off-the-books equipment in the property inventory, the estimated original price is 8,000 yuan, and it is seventy percent new.

In accordance with the provisions of the Accounting Standards for Business Enterprises].

Discovery Profit (Pre-Approval):

Borrow: Fixed assets.

Credit: Prior Year Profit and Loss Adjustment.

Processing Profit (Post-Approval):

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable – Income Tax Payable.

Surplus reserve. Profit distribution – undistributed profits.

According to the provisions of the "Accounting System for Small Enterprises".

Discovery Profit (Pre-Approval):

Borrow: Fixed assets.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

Accumulated depreciation. Processing Profit (Post-Approval):

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Credit: Non-operating income.

If there is a surplus in inventory or cash on hand, it is a profit or loss on the property to be disposed of. The profit and loss of fixed assets is the adjustment of profit and loss in previous years.

According to the provisions of the new accounting standards, it should be included in the profit and loss adjustment account of previous years.

According to the relevant provisions of the Accounting Standard for Business Enterprises No. 4 - Fixed Assets and its application guide, the inventory profit of fixed assets should be recorded as an error in the previous period in the "profit and loss adjustment of previous years" account, while it was originally regarded as the current profit or loss.

The reason why the new standard relaxes the accounting treatment of the profit of fixed assets as an error in the previous period is that the possibility of the profit of fixed assets caused by factors beyond the control of the enterprise is extremely small or even impossible, and the profit of fixed assets of the enterprise must be caused by the undercounting or omission of the previous accounting period of the enterprise, and should be corrected as an accounting error, so as to control the possibility of artificial adjustment of profits to a certain extent.

1. Fixed assets that are in deficit.

According to the value recognized in the detailed statement of inventory loss of fixed assets, the net value of fixed assets of inventory loss is debited to the account of "property loss and excess to be disposed of", the depreciation account is debited to the account of "accumulated depreciation", and the original value of fixed assets is credited to "fixed assets".

The asset has been provided for impairment, and the "provision for impairment of fixed assets" is debited and "property loss and excess to be disposed of, and the loss and excess of fixed assets to be disposed of" is credited. After approval, the balance of this account will be transferred to "Non-operating expenses".

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Borrow: Accumulated depreciation.

Borrow: Provision for impairment of fixed assets.

Credit: Fixed Assets.

Credit: Non-operating expenses.

Borrow: Non-operating expenses.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

2. Fixed assets with profits.

According to the statement of profit and expenditure of fixed assets, the balance of the market ** of the same or similar fixed assets minus the estimated value loss of the assets according to the newness of the assets of the project is debited and credited. After approval, it will be transferred to non-operating income.

Borrow: Fixed assets.

Credit: Prior Year Profit and Loss Adjustment.

According to the relevant provisions of the Accounting Standard for Business Enterprises No. 4 - Fixed Assets and its application guide, the inventory profit of fixed assets should be recorded as an error in the previous period in the "profit and loss adjustment of previous years" account, while it was originally regarded as the current profit or loss.

The reason why the new standard treats the inventory profit of fixed assets as an error in the previous period is that the possibility of the profit of fixed assets due to factors beyond the control of the enterprise is extremely small or even impossible, and the profit of fixed assets of the enterprise must be caused by the understatement or omission of the previous accounting period of the enterprise, and should be corrected as an accounting error, so as to control the possibility of artificial adjustment of profits to a certain extent.

According to the current accounting law, it should be the property loss and excess to be disposed of.

Because the amount of fixed assets is relatively large.

Generally speaking, assets will only be lost or damaged due to various reasons (such as the person responsible, natural disasters, etc.), and occasionally due to measurement errors. However, it is strange that such a large amount of fixed assets, and generally large in size, can make a profit. Therefore, it must have been a mistake in the previous year for this to happen.

As a result, the standard provides for it to be included in the "prior year profit or loss adjustment".

As for inventory losses, it is possible, like inventory losses in other assets.