Do you know the accounting entries for the salvage value of fixed assets?
Today Xiaobian will sort out some knowledge about this aspect for you, hoping to help everyone.
The residual value of fixed assets refers to the value of the residual materials that can be recovered when the fixed assets are scrapped and cleaned, generally through the accounting of fixed assets liquidation, accumulated depreciation, fixed asset impairment provisions, etc., how to write the relevant accounting entries?
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An accounting entry for the salvage value of a fixed asset
1. Carry forward the carrying amount of fixed assets to fixed asset liquidation
Debit: Liquidation of fixed assets
Accumulated depreciation
Provision for impairment of fixed assets
Credit: Fixed assets
2. Expenses such as cleaning fees are incurred
Taxes payable – VAT payable (input VAT)
Credit: bank deposits, etc
3. Residual material conversion income and compensation from insurance companies or responsible persons
Debit: Bank deposit
raw materials
Other receivables
Credit: Liquidation of fixed assets
Taxes payable — VAT payable (output VAT)
4. Obtain the disposal price
5. Net profit and loss on liquidation after the completion of the liquidation of fixed assets
(1) Profits or losses from scrapping and cleaning due to loss of use function, damage caused by natural disasters, etc
Credit: Non-operating income
or
Debit: Non-operating expenses
(2) Gains or losses on the disposal of fixed assets arising from the sale, transfer, etc
Credit: Profit or loss on disposal of assets
Or make a reverse entry
What is a liquidation of fixed assets?
The liquidation of fixed assets is a general term for the identification, scrapping, write-off of assets, disposal of residual values and other work that must be eliminated due to wear and tear, extraordinary disasters and accidents, or the obsolescence and obsolescence of fixed assets that must be eliminated and renewed.
What is non-operating expense?
Non-operating expenses refer to non-operating expenses other than the cost of main business and other business expenses. Includes: fine expenses, donation expenses, extraordinary losses, etc.
The above is the accounting entry for the residual value of fixed assets! The answer given by the editor hopes to be helpful to everyone. If you still want to know more about accounting, you can keep an eye on us!
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