Fixed assets generally refer to non monetary assets that have been used for more than 12 months and have reached a certain value. When an enterprise sells fixed assets, how to write the corresponding accounting entries?
Accounting entries for sale of fixed assets
1. Transfer the fixed assets sold out from the book.
Debit: Fixed assets clearing (original value - depreciation)
Accumulated depreciation
Credit: fixed assets
2. Income from sale.
Debit: cash on hand/bank deposit
Credit: disposal of fixed assets
3. If taxes are involved in the sale.
Debit: disposal of fixed assets
Credit: tax payable - VAT payable (output tax)
4. Carry forward fixed assets liquidation.
(1) In case of liquidation, net income
Debit: disposal of fixed assets
Credit: non operating income
(2) If the clearing is a net loss
Debit: Non operating expenses
Credit: disposal of fixed assets
What are fixed assets?
Fixed assets refer to non monetary assets held by an enterprise for the purpose of producing products, providing labor services, leasing or operating management, which have been used for more than 12 months and have reached a certain value standard, including houses, buildings, machinery, machinery, means of transport and other equipment, appliances, tools, etc. related to production and operating activities.
What is the liquidation of fixed assets?
Fixed assets liquidation is a general term for the identification, scrapping, write off of assets and disposal of residual value of fixed assets that have lost production capacity due to wear and tear, extraordinary disasters and accidents, or have to be replaced due to obsolescence and obsolescence.
What is non operating expenditure?
Non operating expenses refer to non operating expenses other than main business costs and other business expenses. Such as penalty expenditure, donation expenditure, extraordinary loss, etc.
Fixed assets sales accounting entries?
1. Transfer out of fixed assets
Debit: Fixed asset cleaning (this data=original asset value - depreciation)
Accumulated depreciation
Credit: fixed assets - automobile
2. Cash receipts
Debit: cash
Credit: disposal of fixed assets
Tax payable -- VAT payable (note that the tax rate should be paid attention to when VAT is withdrawn. The sales of old assets before January 1, 2009 are withdrawn according to the simple collection method)
3. Net profit and loss from carrying forward asset liquidation
If it is income
Debit: disposal of fixed assets
Credit: non operating income
If it is a loss
Debit: Non operating expenses
Credit: disposal of fixed assets
Extended data:
Notes on depreciation of fixed assets
The enterprise shall select the depreciation method according to the expected realization method of the economic benefits contained in the fixed assets. The depreciation methods available mainly include straight-line method, workload method, double declining balance method, sum of years method, etc. Once the depreciation method is determined, it shall not be changed at will. If any change is required, it shall be explained in the notes to the financial statements.
In order to reflect the principle of consistency, the depreciation method of fixed assets cannot be modified in each depreciation method within one year. When the withdrawn month is not less than the expected use month, depreciation will not be carried out. Fixed assets increased in the current period shall not be depreciated in the current period, while those decreased in the current period shall be depreciated in accordance with the principle of comparability.
How to make accounting entries for selling fixed assets?
Sales of fixed assets: Debit: Disposal of fixed assets Accumulated depreciation Credit: Fixed assets
Income from sale: Debit: Cash Credit: Disposal of fixed assets
If taxes are involved in the sale: Debit: fixed assets disposal Credit: taxes payable carry forward fixed assets disposal
If the liquidation is net income: Debit: liquidation of fixed assets Loan Asset disposal profit and loss
If the liquidation is net loss: Debit: asset disposal profit and loss Credit: fixed asset liquidation
Development materials:
An accounting entry is a record that lists the corresponding accounts of both parties and their amounts for each economic transaction according to the requirements of the double entry bookkeeping principle.
In actual work, accounting entries are realized by filling in bookkeeping vouchers, which is an important link to ensure correct and reliable accounting records. In accounting, no matter what kind of economic business occurs, it is necessary to determine the accounting entries of economic business by filling in bookkeeping vouchers according to the bookkeeping rules before registering accounts, so that account records and post inspection can be performed correctly. There are two kinds of accounting entries: simple entry and compound entry.
Accounting entries are different from bookkeeping vouchers: bookkeeping vouchers require complete elements and have strict review and preparation procedures, while accounting entries only indicate the items and amounts that should be borrowed and lent in bookkeeping vouchers, which is the most simplified form of bookkeeping vouchers. Accounting entries usually appear in books for the convenience of explanation, but rarely appear in accounting practice
The method of accounting entry analysis divides the development process of things into several stages and levels, analyzes them step by step, and finally obtains the results. The teaching of preparing accounting entries by using chromatography is intuitive and clear, and can achieve ideal teaching results. The steps are as follows:
1. Analyze and list the accounts involved in economic transactions.
2. Analyze the nature of accounts, such as asset accounts and liability accounts.
3. Analyze the amount changes of each account.
4. Determine the direction of the account according to steps 2 and 3 in combination with the economic content (increase or decrease) reflected by the debit and credit of various accounts.
5. Prepare accounting entries according to the bookkeeping rule that where there is a debit, there must be a credit, and debit and credit must be equal.
chromatography
Chromatography refers to a method to solve problems by dividing the development process of things into several stages and levels, and analyzing them step by step to get the final results. The teaching of preparing accounting entries by using chromatography is intuitive and clear, and can achieve ideal teaching results. The steps are as follows:
1. Analyze and list the accounts involved in economic transactions.
2. Analyze the nature of accounts, such as asset accounts and liability accounts.
