How to keep accounts for the scrapping of fixed assets of administrative units

Mondo Finance Updated on 2024-01-19

How to keep accounts for the scrapping of fixed assets of administrative units

The scrapping of fixed assets of administrative units is an important part of the accounting work of administrative units, and it is also an important part of the financial management of administrative units. This article will introduce in detail the bookkeeping methods of the scrapping of fixed assets of administrative units, and help the accountants of administrative units to better grasp the accounting and management of the scrapping of fixed assets.

1. Definition and standard of scrapping of fixed assets.

Scrapping of fixed assets refers to the process of scrapping fixed assets in accordance with the prescribed procedures due to the fact that they can no longer be used or the cost of continuing to use is too high to meet the needs of the normal operation of the administrative unit due to the long service life, serious damage, and technological upgrading.

The criteria for the scrapping of fixed assets of administrative units include:

1.The service life of fixed assets is too long, and it can no longer be used or the cost of continuing to use is too high;

2.Fixed assets are seriously damaged and cannot be repaired or the repair cost is too high;

3.The technical update of fixed assets can no longer meet the needs of the normal operation of administrative units;

4.Fixed assets cannot be used for other reasons or the cost of continuing to use them is too high.

2. Accounting methods for the scrapping of fixed assets.

The accounting method for the scrapping of fixed assets of an administrative unit includes the following steps:

1.Liquidation of fixed assets.

Before scrapping fixed assets, administrative units need to clean up fixed assets. The contents of the disposal include: transferring the book value of fixed assets to the disposal account, and making provision for impairment of fixed assets.

2.Confirm the cleanup cost.

The administrative unit needs to confirm the cost of liquidating fixed assets, including labor costs, transportation costs, insurance premiums, etc. Liquidation expenses need to be charged to the "Non-Operating Expenses" account.

3.Dealing with salvage income.

After the administrative unit scraps the fixed assets, it needs to dispose of the residual value. If the residual value income is greater than the difference between the liquidation costs, it needs to be included in the "non-operating income" accountIf the residual value income is less than the difference between the liquidation expenses, it needs to be included in the "non-operating expenses" account.

4.Write off fixed assets.

After completing the above steps, the administrative unit needs to transfer all the book value of the fixed assets to the "fixed **" account and cancel the fixed assets card.

3. Precautions.

1.When the administrative unit scraps fixed assets, it needs to strictly follow the prescribed procedures to ensure that the accounts are consistent

2.When the administrative unit keeps the book, it needs to accurately record the amount and account of each step to ensure the accuracy and completeness of the bookkeeping

3.When the administrative unit deals with the residual value income, it needs to compare it with the liquidation cost and keep accounts according to the actual situation;

4.Administrative units need to pay attention to the use and classification of accounts to ensure the standardization and accuracy of bookkeeping.

In short, the bookkeeping of the scrapping of fixed assets of administrative units is an important task that needs to be carried out in strict accordance with the prescribed procedures and requirements. Accounting personnel need to carefully study and Xi the relevant regulations and requirements, constantly improve their business level and comprehensive quality, and ensure the accuracy and completeness of bookkeeping work.

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