In life, we often hear the word scrapping, mainly for equipment, wares, etc., because they can not continue to use or unqualified for the explanation of scrapping.
One, how to scrap fixed assets
There are two cases of fixed asset scrapping: one is due to wear and tear or obsolescence, the expiration of the period of use can not continue to use; the second is due to technological advances, it must be replaced by advanced equipment. Fixed assets scrapped, on the one hand, due to the fixed assets out of the enterprise caused by the reduction of fixed assets,
On the other hand, in the process of cleaning up will also incur some clean-up costs, but also may make a certain amount of income from the realization. Therefore, the accounting for fixed assets scrapped should be carried out in accordance with the following procedures:
(1) write off the original value of fixed assets scrapped and depreciated amount. According to the net value of fixed assets, debit "fixed assets cleaning" account; according to the depreciation amount, debit "accumulated depreciation" account; according to the original value of fixed assets, credit "fixed assets" account.
(2) Carry forward the value of salvage and realization income. According to the recovery of the residual value and the realization of income, debit "bank deposits", "raw materials" and other accounts, credit "fixed assets" account.
(3) Payment of liquidation costs. According to the cleaning costs incurred, debit "fixed assets cleaning" account, credit "bank deposits" and other accounts.
(4) carry forward the net gain or loss after liquidation. Fixed assets after liquidation of the net gain, debit "fixed assets cleanup" account, credit "non-operating income - fixed assets proceeds" account; fixed assets after liquidation of the net loss, debit "non-operating expenditures - Loss of fixed assets" account, credit "fixed assets" account.
Two, fixed assets can apply for scrapping conditions
(a) long service life, loss of function, completely lost the value of use, or can not be used and no repair value;
(b) product technology is outdated, poor quality, high energy consumption, low efficiency, is obsolete and is not suitable for continued use, or technical indicators have not reached the requirements of use;
(c) serious damage, can not be repaired, or the use of fixed assets. (C) serious damage, can not be repaired or can be repaired, but the cumulative repair costs have been close to or exceed the market value;
(D) the main accessories are damaged, can not be repaired, but the main body can still be used, can be partially scrapped;
(E) duty-free imports of instruments and equipment should be in the expiration of the supervision period, the Customs and Excise Department applied for deregulation and approval before the application for scrapping.
The above is how to scrap fixed assets and fixed assets scrapped conditions.