How to deal with the old-for-new account of excavator?

Excavators purchased by enterprises belong to the category of fixed assets. If the excavator is obtained by replacing the old one with the new one, it shall be handled according to the fixed assets settlement account. How to make an account?

Accounting treatment of excavator replacing old ones with new ones

Received a new excavator:

Borrow: fixed assets

Taxes payable-VAT payable-input tax

Loans: accounts payable, etc.

Exchange of old excavators:

Fixed assets transferred to fixed assets liquidation:

Debit: liquidation of fixed assets

accumulated depreciation

Debit: provision for impairment of fixed assets

Loans: fixed assets

Money received from the sale of fixed assets:

Debit: accounts payable, etc.

Loan: liquidation of fixed assets

Taxes payable-VAT payable-output tax

Carry forward liquidation gains and losses:

Debit: gains and losses from asset disposal

Loan: liquidation of fixed assets

If the sales are profitable, make the opposite entry.

Accounting treatment of leasing excavator

1. The rental of machinery and equipment by the company depends on the charging period of the contract period. If the lease term is the current month and the next month, then:

Debit: accounts receivable

Loan: income from main business

The lease term of machinery and equipment is one year, and if the fees are charged after one year, it will be calculated according to1February:

Debit: accounts receivable

Loan: income from main business

Second, the company's business is mainly renting excavators, and the income from renting excavators can be regarded as a main business income. Debit accounts receivable or cash on hand or bank deposits, and credit the income from main business; At the same time, the excavator depreciates the equipment, and the oil cost and daily maintenance cost incurred are recorded in the operating cost or period cost.

At the end of the month, summarize all costs and expenses, transfer the difference between income and costs and expenses to the profit of this year, and balance the profit and loss accounts.