The accounting entries for depreciation are as follows:
After the acquisition of fixed assets and the start of their use, accumulated depreciation is required to be charged to the books every month, starting from the month following the month in which the fixed assets are recorded. The monthly accrual amount is generally calculated by the average method based on the residual value rate and the accrual period.
When depreciation is charged, the accounting treatment is as follows:
Borrow: administrative expenses/manufacturing costs/selling expenses, etc.
Credit: Accumulated depreciation
If the enterprise carries out the cleaning up of the fixed assets, then it is necessary to clean up the fixed assets according to the net value of fixed assets, and the original value of fixed assets and the book has been charged with the cumulative depreciation of the write-off.
Enterprises in the fixed asset cleanup, the account treatment is:
Borrow: fixed asset cleanup
Accumulated depreciation
Credit: fixed assets
Enterprises finally according to the actual cleanup results, the record of bank deposits, other receivables, non-operating income, non-operating expenditures, etc. Write-off of fixed asset cleanup accounts.