What is the definition of the five five amortization method? 2 What is the one time amortization met

The 5. amortization method is a method of amortizing half of the value of circulating materials when they are used and amortizing the other half of their value when they are scrapped. Under this method, in order to calculate the amortized value of working materials in use and working materials, three secondary accounts should be set up under the general ledger account of "working materials", "working materials --- in use", "working materials ---in use" and "amortization ---of working materials".

Using the five-five amortization method, the accounting accounts of working materials should be as follows.

When receiving: "Turnover material --- in use" is debited and "Turnover material --- in storage" is credited according to its book**

Half of the book value is amortized, and the accounts of "sales expenses, management expenses, production costs, other business costs, and engineering construction" are debited, and "amortization of working materials--- is credited".

At the time of retirement: Amortize the other half of the book value, debit the accounts such as "selling expenses, administrative expenses, production costs, other business costs, engineering construction", and credit "amortization of --- working materials".

In addition, the amortization amount of all the working materials that have been accrued and in use is re-sold, and the "amortization of working materials ---" is debited and "the --- of working materials in use" is credited

When scrapping has a salvage value:

The value of scrapped turnover materials shall be offset by the relevant capital costs or current profit and loss, debited to "raw materials, bank deposits", etc., and credited to "sales expenses, management expenses, production costs, other business costs, engineering construction" and other accounts.

The five-five amortization method means that 50% of the value of low-value consumables is amortized into the corresponding expenses of the current period when they are used, and the remaining 50% of the amount on the account of low-value consumables. If you use a quantity-amount book to register low-value consumables, you need to set up the "Low-value consumables in use" sub-account under the low-value consumables account to register these low-value consumables. When such low-value consumables are scrapped, the remaining 50% of the amount is amortized into the corresponding expenses.

One-time amortization method: When you receive it, all the turnover materials such as low-value consumables are amortized at one time and included in the expense.

Five-five amortization method: the expense is included in two parts, that is, half is amortized when it is received, and the other half is amortized when it is scrapped.

The amortization method refers to the method of amortizing the value of low-value consumables into costs and expenses on a monthly basis according to the length of their useful life or the size of their value.

Legal analysis: The five-five amortization method refers to an amortization method that amortizes half of the value of low-value consumables when they are used, and then amortizes the other half of their value when they are scrapped and writes off their total costThis method is suitable for accounting for the reduction of low-value consumables with high value and high management requirements

Logistics enterprises that use the five-five amortization method to account for low-value consumables also need to be set up under the low-value consumables account"Barter at low value in the warehouse"、"Low-value consumables are in use"with"Amortization of low-value consumables"Three itemized accounts...It is a method of amortizing half of the value of rotating materials when they are used and the other half of their value when they are scrapped.

Legal basis: Measures of the People's Republic of China for the Administration of Industry Standards

Article 1 In order to strengthen the management of industry standards and ensure the coordination and unification of industry standards, these measures are formulated in accordance with the provisions of the Standardization Law of the People's Republic of China and the Regulations on the Implementation of the Standardization Law of the People's Republic of China.

Article 2 The industry standard is a standard formulated for the technical requirements that do not have a national standard and need to be unified within a certain industry in the country. Industry standards shall not contradict relevant national standards. Relevant industry standards should be coordinated and unified, and should not be duplicated.

Industry standards shall be abolished after the implementation of the corresponding national standards.

Article 3 The following technical requirements that need to be unified within the industry can be formulated industry standards (including the production of standard samples):

1) Technical terms, symbols, codes (including **), file formats, drawing methods and other general technical languages;

2) Varieties, specifications, performance parameters, quality indicators, test methods, and safety and health requirements of industrial and agricultural products;

3) Design, production, inspection, packaging, storage, transportation, use, maintenance methods of industrial and agricultural products, as well as safety and health requirements in the process of production, storage and transportation;

4) Technical requirements for general parts;

5) Product structure elements and interchange and matching requirements;

6) Technical requirements and methods for survey, planning, design, construction and acceptance of engineering construction;

7) Technical requirements for information, energy, resources, transportation, and their management technology.

The five five amortization method entries are as follows:When receiving: borrowing:

Low noise makes the accompanying consumables - in use;Credit: low-value consumables - in stock;Borrow: Administrative expenses - amortization of low-value consumables;Credit:

Low-value consumables – Amortization of low-value consumables;When scrapping, 50% of the actual cost of scrapped low-value consumables, the difference after deducting the value of residual materials will be included in the management expenses.

Borrow: materials and materials (residual material value); Low-value consumables – amortization of low-value consumables (amortization); Administrative expenses - amortization of low-value consumables (the difference between 50% of the actual cost of scrapped low-value consumables minus the value of residual materials); Credit: Low-value consumables – in use (the actual cost of scrapped low-value consumables).

Answer: The five-five amortization method is the five-percent amortization method, which refers to the amortization method of amortizing half when receiving low-value consumables and amortizing half when abandoning. This method is simple to calculate, but the amortization amount at the time of scrapping is large and the balance is poor.

When receiving: borrowing: low-value consumables - in use.

Credit: low-value consumables - in stock;

Borrow: Administrative expenses - amortization of low-value consumables;

Credit: Low-value consumables - Amortization of low-value consumables.

When scrapping, the scrapped low-value consumables are actually 50% of the sales cost of the sail, and the difference after deducting the value of the residual material is included in the management expenses.

Borrow: materials and materials (residual material value);

Low-value consumables – amortization of low-value consumables (amortization);

Administrative expenses - amortization of low-value consumables (the difference between 50% of the actual cost of scrapped low-value consumables minus the value of residual materials);

Credit: Low-value consumables – in use (the actual cost of scrapped low-value consumables).

What is the difference between the five-five amortization method and the one-time amortization method?

The five-five amortization method and the one-time amortization method have been widely used in the practice of accounting treatment. The so-called five-five amortization method refers to the amortization of half when purchasing low-value consumables, and half of the amortization when low-value consumables are scrapped; The one-time amortization method refers to the amortization at the time of purchase. There are no hard and fast rules on what kind of amortization method to use, which gives the accountant the freedom to deal with it in the car.

However, each unit has its own specific situation, according to the number of low-value consumables purchased, the affordability of the enterprise's expenses, after careful research to decide the amortization method. After the amortization method is determined, it is not allowed to change it in one fiscal year, and the two amortization methods cannot be used in rotation within one fiscal year to ensure the continuity of financial accounting.

1. The five-five amortization method is a method of amortizing half of the value of turnover materials when they are used and amortizing the other half of their value when they are scrapped.

2. One-time amortization method, that is, when receiving low-value consumables, all their costs are included in the product cost or period expenses.

The difference between the two is that the amortization is different, one is amortized in half, and the other is directly amortized in full.

Note: The five-five amortization method has now been abolished in accounting.

Remember the meaning of the five-five amortization method before accounting entries, that is, when receiving the turnover items, half of the value will be amortized into the corresponding cost, and the other half of the value will be amortized when this part of the item is scrapped, and the one-time amortization of the choice does not exist in the last five, as long as the full amortization is more convenient when receiving.