Accounting treatment of purchased fixed assets
1. Purchase of fixed assets.
The purchase of fixed assets mainly includes the following two situations:
1.Purchase fixed assets that do not need to be installed.
Fixed assets that do not need to be installed refer to the fixed assets purchased by the enterprise that can be used directly without installation. In this case, the cost of the purchased fixed asset should be included in the Fixed Assets account. Specifically, the enterprise should carry out accounting treatment according to the invoice amount of the purchased fixed assets (including the purchase price, relevant taxes, transportation costs, loading and unloading fees, etc.).
2.Purchase of fixed assets that need to be installed.
Fixed assets that need to be installed refer to the fixed assets purchased by the enterprise that need to be installed before they can be used. In this case, the enterprise should first include the cost of purchased fixed assets in the "construction in progress" account, and then transfer it to the "fixed assets" account after the installation is completed.
2. Accounting treatment of fixed assets.
1.Purchase fixed assets that do not need to be installed.
Borrow: Fixed assets.
Credit: Bank deposits (or other payables).
2.Purchase of fixed assets that need to be installed.
Borrow: Construction in progress.
Credit: Bank deposits (or other payables).
After the installation is completed, transfer the balance of the Construction in Progress account to the Fixed Assets account.
Borrow: Fixed assets.
Credit: Construction in progress.
3. Provision for depreciation of fixed assets.
Depreciation of fixed assets refers to the reduction in the value of fixed assets due to wear and tear in the process of use. Enterprises should provide depreciation on a regular basis in accordance with the prescribed depreciation method. Specifically, enterprises should account for the depreciation of fixed assets according to the "accumulated depreciation" account.
4. Disposal of fixed assets.
When the enterprise is scrapped or damaged fixed assets, it should be accounted for in accordance with relevant regulations. Specifically, the enterprise should transfer the net value of **, scrapped or damaged fixed assets to the "non-operating income" or "non-operating expenses" account. At the same time, depreciation that has already been accrued should be transferred out of the Accumulated Depreciation account.
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