Accounting treatment of fixed asset disposal expenses

Mondo Finance Updated on 2024-01-29

Accounting treatment of fixed asset disposal expenses.

1. Overview of fixed asset disposal.

The liquidation of fixed assets refers to the accounting treatment process in which an enterprise subtracts or increases its fixed assets or their components from its book value due to **, scrapping, damage, foreign investment, non-monetary asset exchange, debt restructuring and other reasons, and finally records the residual value of its fixed assets or the liquidation income of its fixed assets into the current profit or loss.

2. Types of fixed assets disposal expenses.

1.Expenses incurred in the process of liquidation of fixed assets, including the following:

1) Wages and benefits of clean-up personnel;

2) The cost of materials and machinery that needs to be used in the process of liquidation of fixed assets;

3) Other direct costs in the process of liquidation of fixed assets, such as transportation costs, loading and unloading costs, etc.

2.Taxes and fees incurred in the process of liquidation of fixed assets, including the following:

1) Value-added tax and its surcharge;

2) Land Appreciation Tax;

3) Stamp duty, etc.

3. Accounting treatment of fixed assets disposal expenses.

1.The expenses incurred in the process of liquidation of fixed assets shall be accounted for in the account of "disposal of fixed assets". The specific accounting treatment is as follows:

1) When the liquidation expenses are incurred, the "fixed assets liquidation" account is debited, and the "bank deposit", "raw materials", "employee remuneration payable" and other accounts are credited;

2) When the income from the sale is obtained, the accounts such as "bank deposits" and "raw materials" are debited, and the accounts of "disposal of fixed assets" are credited.

2.The taxes and fees incurred in the process of liquidation of fixed assets shall be accounted for in the "taxes payable" account. The specific accounting treatment is as follows:

1) When calculating the VAT payable and its additional tax, the account of "disposal of fixed assets" is debited, and the accounts of "tax payable - VAT payable (output tax)" and tax payable - additional tax payable are credited;

2) When calculating the LAT payable, the account of "Disposal of Fixed Assets" shall be debited and the account of "Tax Payable - LAT Payable" shall be credited;

3) When calculating the stamp duty payable, the "Administrative Expenses" account is debited and the "Bank Deposits" account is credited.

Fourth, the accounting requirements for the disposal of fixed assets.

1.Accounting must be carried out in strict accordance with the relevant national policies and regulations, and accounts must not be adjusted at will or falsified;

2.Accounting treatment must be carried out in accordance with the prescribed procedures, and the procedures must not be changed or simplified at will;

3.Accounting and accounting must be carried out in a timely manner without delay or omission;

4.The accuracy and completeness of accounting must be ensured, and no omissions or miscalculations must be made.

5. Requirements for the review of fixed assets disposal costs.

1.The review of the disposal cost of fixed assets must be carried out comprehensively, systematically and meticulously;

2.The review of the disposal cost of fixed assets must focus on the substantive review;

3.The review of the disposal cost of fixed assets must focus on compliance review;

4.In the examination of the cost of liquidation of fixed assets, it is necessary to pay attention to the examination of reasonableness.

6. Summary. The accounting treatment of fixed assets disposal expenses is one of the important parts of enterprise financial management. In order to ensure the accuracy and completeness of accounting, accounting and processing must be carried out in strict accordance with the relevant national policies and regulations. At the same time, in order to ensure the compliance and rationality of enterprise financial management, it is necessary to pay attention to the review and supervision of fixed asset disposal costs. Only in this way can we ensure the healthy and orderly development of enterprise financial management.

Search Topic Full Time Challenge in December

Related Pages