Accounting for depreciation of fixed assets of an enterprise 30

The accounting for depreciation of fixed assets refers to the accounting of the extraction of the value of the annual wear and tear of fixed assets. In order to correctly account for the accumulated depreciation of fixed assets, you should set up the Accumulated Depreciation account.

1. General equipment part.

General Equipment Classification Depreciation years.

1. Machinery and equipment 10 14 years.

2. Power equipment 11 18 years.

3. Conduction equipment 15 28 years.

4. Transportation equipment 6 12 years.

5. Automated, semi-automatic control equipment 8 12 years.

6. Electronic computer 4 10 years.

7. General test instruments and equipment 7 12 years.

8. Industrial furnace 7 13 years.

9. Tools and other production tools 9 14 years.

10. Non-production equipment 18 22 years.

11. Televisions, photocopiers, word processors 5 8 years of special equipment.

1. Metallurgical industry equipment 9 15 years.

2. Special equipment for electric power industry.

Power generation and heating equipment 12 20 years.

Transmission lines 30-35 years.

Distribution lines 14-16 years.

Substation and distribution equipment 18-22 years.

Nuclear power generation equipment 20-25 years.

3. Special equipment for machinery industry 8 12 years.

4. Petroleum industry specialized equipment 8 14 years.

5. Special equipment for chemical and pharmaceutical industries 7 14 years.

6. Special equipment for electronic instrument and telecommunications industry 5 10 years 7. Special equipment for building materials industry 6 12 years.

8. Special equipment for textile and light industry 8 14 years.

9. Special equipment for mining, coal and forest 7 15 years.

10. Special equipment for shipbuilding industry 15 22 years.

11. Special equipment for the nuclear industry 20 25 years.

Special equipment for public utilities.

12. Tap water 15 25 years.

13. Gas 16 25 years.

Houses, building parts.

Housing 1, production house 30 40 years.

2. Corroded production room 20 25 years.

3. Strongly corroded production room 10 15 years.

4. Non-production buildings 35 45 years.

5. Simple house 8 10 years.

Building 6, hydroelectric dam 45 55 years.

7. Other buildings 15 25 years.

The average method of life (characteristic: the accrued depreciation of fixed assets is evenly allocated to the expected useful life of fixed assets, and the depreciation amount calculated by this method is equal for each period).

Formula: Annual depreciation rate = [(1 - estimated net residual value rate) Expected useful life] * 100%.

Monthly depreciation rate = annual depreciation rate of 12

Monthly depreciation amount = original price of fixed assets * monthly depreciation rate.

2.Workload method (a method of calculating the amount of depreciation accrued for each period based on the actual amount of work).

Formula: Depreciation per unit of work = [original price of fixed assets * (1 - estimated net residual value rate)] estimated total workload.

Monthly depreciation of a fixed asset = monthly workload of the fixed asset * depreciation of unit workload.

3.Double declining balance method (generally the net value of fixed assets should be amortized on an average basis after deducting the estimated net residual value within two years before the expiration of the useful life of fixed assets).

Formula: Annual depreciation rate = [2 estimated useful life] * 100%.

Monthly depreciation rate = annual depreciation rate of 12

Monthly depreciation amount = net book value of fixed assets at the beginning of each month * monthly depreciation rate.

4.The sum of years method (the annual depreciation amount is calculated by multiplying the original price of a fixed asset by a decreasing fraction of the estimated net residual value).

Formula: Annual depreciation rate = [Remaining useful life Sum of years of expected useful life] * 100%.

Monthly depreciation rate = annual depreciation rate of 12

Monthly depreciation amount = (original price of fixed assets - estimated net residual value) * monthly depreciation rate.

Fixed assets can be used for a long time in the process of production and operation of enterprises, and can bring benefits to enterprises in a number of accounting periods, so under the condition that enterprises adopt the principle of accrual accounting, according to the requirements of the principle of proportionality, it is necessary to distribute the value of fixed assets within the depreciation period of fixed assets according to a certain distribution method, so as to correctly calculate the cost of products and the profit and loss of the current period.

Enterprises should accrue depreciation of fixed assets on a monthly basis. In the accounting, the accumulated depreciation section should be set, which is the deduction account of the fixed assets account, and the specific accounting treatment is the accumulated depreciation of the borrowing manufacturing expenses management expenses and other business expenses. The accumulated depreciation account is only accounted for by general classification, and not by detailed classification.

This account belongs to the deduction account of the fixed assets account, the credit side registers the depreciation of the fixed assets accrued on a regular basis, and the debit side registers the accumulated depreciation of the fixed assets transferred out when the fixed assets are reduced.

The closing credit balance reflects the accumulated depreciation of existing fixed assets that have been coded and chained. When calculating the amount of depreciation, it is necessary to take into account that there is a residual value of the fixed asset when it is discarded. When calculating the depreciation of fixed assets, in addition to the estimated depreciation life of the fixed assets, it is also necessary to estimate the net residual value, which is the residual value of the estimated residual value minus the estimated disposal costs.

That is, depreciation is calculated by subtracting the estimated net residual value from the value of the fixed asset and dividing it by the estimated depreciation period.

There are four common depreciation methods for fixed assets, namely the average life method, the workload method, the double declining balance method, and the sum of years method. Different depreciation methods have different calculation formulas.

How is depreciation of fixed assets calculated?

The depreciation of fixed assets refers to the systematic apportionment of the accrued depreciation amount according to the determined method during the service life of the fixed assets.

The amount of the original price of a fixed asset subject to depreciation after deducting its estimated net value is equal to the amount of depreciation accrued. Note that for fixed assets for which provision for impairment has been made, the cumulative amount of provision for impairment of fixed assets should be deducted.

The formula for calculating fixed assets is as follows:

1.Averaging of years.

Annual depreciation. (Original Price - Estimated Net Residual Value) Estimated useful life.

Original price (1-estimated net residual value with fiber original price) Estimated service life.

Original Price Annual depreciation rate.

2.Workload method.

Depreciation per unit of effort = original value of fixed assets (1 - estimated net residual value rate) Estimated total effort.

Monthly depreciation of a fixed asset = monthly workload of the fixed asset * depreciation of unit workload.

3.Double declining balance method.

Double declining balance method: It refers to a method of calculating the depreciation of fixed assets based on the amount of accumulated depreciation at the beginning of each period of fixed assets minus accumulated depreciation (i.e., net fixed assets) and double the straight-line depreciation rate without considering the estimated net residual value of fixed assets.

The calculation formula is as follows:

Annual depreciation rate = 2 Estimated useful life (years) 100%;

For fixed assets depreciated using the double declining balance method, the balance of the net fixed asset net value after deducting the estimated net residual value is usually amortized evenly within two years before the expiration of the depreciation period.

4.Sum of years method.

Annual depreciation rate = Acceptable useful life 100% of the sum of the number of years of expected useful life.

What is the expense of depreciation of fixed assets?

The depreciation of fixed assets should be debited according to the purpose and included in the accounts of management expenses, sales expenses, other business costs, manufacturing expenses and other accounts.

When accruing the depreciation of fixed assets, the following accounting treatment can be done:

Borrow: Administrative expenses.

Selling expenses. Other industry erection costs.

Accounts such as manufacturing expenses.

Credit: Accumulated depreciation - fixed assets.

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The depreciation of fixed assets should be accounted for in this way, and there are four methods for calculating the depreciation of fixed assets, namely the average method of life, the workload method, the double declining balance method, and the sum of years method. The calculation formula is as follows: Annual depreciation rate of the average method = (1 - estimated net residual value rate) Expected useful life (years) 100% monthly depreciation rate = annual depreciation rate Depreciation amount in December = original price of fixed assets Monthly depreciation rate Depreciation amount per unit of work method = original price of fixed assets (1 - estimated net residual value rate) Estimated total workload Monthly depreciation amount of a fixed asset = monthly workload of the fixed asset Depreciation amount per unit of workload Annual depreciation rate of double declining balance method = 2 Estimated useful life (years) 100% monthly depreciation rate =Annual depreciation rate Depreciation amount in December = net book value of fixed assets at the beginning of the period Monthly depreciation rate Depreciation rate of the sum of years = remaining useful life Sum of years of expected useful life 100% = (estimated useful life - useful life) Estimated useful life (Estimated useful life + 1) 2 100% monthly depreciation rate = annual depreciation rate Depreciation amount in December = (original value of fixed assets - estimated net residual value) Monthly depreciation rate.

First of all, we need to understand this provision for depreciation:

The object of depreciation naturally refers to the assets that can be depreciated, that is, physical assets that can maintain their shape and size during use but will gradually be consumed or dismantled.

Assets such as materials are not only physically consumed when they are used, but also become less economically useful over time. At each time, a portion of the usefulness of a depreciable asset disappears. As a result, the corresponding portion of its cost is recognized as a depreciation expense.

In accounting, depreciation means systematically allocating the cost of a depreciable asset to an expense over the useful life of the asset. This process is as follows: the depreciable cost is included in the asset entries of the balance sheet, such as construction and equipment, and when the useful life of the asset expires, we include the depreciation cost in the expense entries of the income statement, such as depreciation.

Businesses use different depreciation methods for different types of assets. Most businesses use the straight-line method of depreciation in their financial statements and the accelerated method of depreciation in their income tax returns, and the reasons for this are simple and easy to understand. The accelerated depreciation method results in higher depreciation expense, and the reported net profit is lower than the straight-line depreciation method.

Most publicly traded companies want to demonstrate the strongest possible profitability, at least as much as the profitability of their competitors, so the vast majority of publicly traded companies use the straight-line method of depreciation in their financial statements.

In terms of income tax, the situation is completely different. Management usually expects companies to report as low taxable profits as possible in their income tax returns, and accelerated depreciation can significantly reduce taxable profits and taxes paid for the current period.

When the company manages fixed assets, some of them have already used financial software to deal with them. Like Zhidian financial software, financial statements can be automatically generated by entering vouchers, and detailed management of fixed assets can be carried out, such as entering fixed asset cards, flexible increase and decrease of fixed assets, list of fixed assets, free withdrawal of depreciation of fixed assets, and flexible allocation of depreciation expenses of fixed assets. And so on, and so on, which is very useful.

If you continue to use it, you don't need to do accounting processing. If it is not used, first, the fixed assets are transferred to liquidation. When a fixed asset is transferred to liquidation, the "Fixed Assets Disposal" account is debited according to the book value of the fixed asset, the "Accumulated Depreciation" account is debited according to the accumulated depreciation accrued, the "Fixed Assets Impairment Provision" account is debited according to the impairment provision that has been accrued, and the "Fixed Assets" account is credited according to the book balance of the fixed assets.

Second, the clean-up costs incurred. The relevant expenses incurred in the process of liquidation of fixed assets and the relevant taxes and fees payable shall be debited to the account of "Disposal of Fixed Assets" and credited to the accounts of "Bank Deposit" and "Taxes Payable".

Third, the treatment of income and residual materials. The enterprise recovers the price of the fixed assets, the value of the residual materials and the income from the sale of the price, etc., and the liquidation expenses should be reduced. According to the actual price received and the income from the sale of residual materials, the accounts of "bank deposits" and "raw materials" shall be debited, and the accounts of "disposal of fixed assets" shall be credited.

Fourth, the handling of insurance compensation. The losses calculated or received by the enterprise that should be compensated by the insurance company or the negligent person shall be offset against the liquidation expenses, and the accounts of "other receivables" and "bank deposits" shall be debited and the account of "disposal of fixed assets" shall be credited.

Fifth, the treatment of net profit and loss. The net loss after the completion of the liquidation of fixed assets belongs to the normal processing loss during the production and operation period, and the account of "non-operating expenses - loss on disposal of non-current assets" is debited and the account of "disposal of fixed assets" is credited; If it is caused by natural disasters and other abnormal reasons during the production and operation period, the "non-operating expenses - extraordinary losses" account will be debited and the "fixed assets disposal" account will be credited. The net proceeds after the completion of the disposal of fixed assets are debited to the Fixed Assets Disposal account and credited to the Non-Operating Income account.

First, understand the concept of depreciation. Enterprise production, involving costs, fixed assets because they can be reused, so its cost transfer is different from materials, etc., is a one-time transfer to the product, and fixed assets are gradually transferred to the cost of the product, therefore, the fixed assets accounting set up the accumulated depreciation account, is to calculate its value transfer process and amount.

Depreciation of fixed assets begins in the second month after purchase, and depreciation stops in the month after scrapping;

There are straight-line method, double balance method, etc., and the straight-line method is commonly used. Calculation formula:

Monthly depreciation = (original value - estimated residual value) Service life 12 The accounting standards for the service life of fixed assets are not very consistent with the tax law, and the accounting standards are used for bookkeeping (the service life is determined by the enterprise), and the income is restored according to the tax law when making tax adjustments.

Minimum number of years under the tax law:

1) 20 years for houses and buildings;

ii) 10 years for aircraft, trains, ships, machines, machinery and other production equipment;

3) 5 years for appliances, tools, furniture, etc. related to production and business activities;

4) 4 years for means of transport other than airplanes, trains, and ships;

e) electronic equipment, for 3 years.

Finally, depreciation accounting treatment.

Debit: The cost of production (which can be directly charged to a product).

Manufacturing Expenses (for workshops).

Administrative expenses (used by administrative departments).

Operating expenses (used by the sales department).

Credit: Accumulated depreciation.