Enterprises incurred long-term amortization of expenses, debit long-term amortization of expenses, credit "bank deposits", "raw materials" and other subjects.
Borrow: bank deposits
Credit: bank deposits (raw materials)
In order to better understand, we are here to give a simple example:
Case
Enterprise A leased a piece of equipment, due to the quality of the operation of the problem, the enterprise had to carry out large-scale repairs to the equipment. After a series of accounting, found that the repair expenditure of 48,000 yuan, and the interval between repairs for four years. Try to prepare the relevant accounting entries.
Based on the topic can be seen, the cost of repair of the equipment, need to be included in the "long-term amortized expenses" account, then:
Borrow: long-term amortized expenses - repair expenditures of 48,000
Loan: bank deposits 48,000
Because the repair interval of 4 years, so you need to repair the interval of 4 years of average amortization, you need to carry out the following calculations.
48000 ÷ 4 ÷ 12 = 1000 (yuan)
Through the calculation can be concluded that the monthly amortization of 1000 yuan, then the accounting entries are:
Borrow: Administrative Expenses 1000
Credit: Long-term amortized expenses - repair expenditures 1000
Long-term amortized expenses of the method of accrual and amortization:
(a) long-term amortized expenses:
Small enterprises incurred long-term amortized expenses, debit this account, credit "bank deposits", "raw materials" and other subjects.
(2) amortization of long-term amortized expenses:
1. Fully depreciated fixed assets alteration expenditures, according to the estimated useful life of fixed assets amortized over time.
From the definition, it can be seen that, in general, can extend the useful life of the asset. For "fully depreciated fixed assets", small business standards can not be adjusted to the depreciation period, so only through the long-term amortization expense accounting, and amortization over the estimated useful life of fixed assets.
2. Expenditures on alterations to fixed assets under operating leases are amortized over the remaining term of the lease in accordance with the contract.
The lessee only has the right to use the asset for the period specified in the agreement, and therefore the alteration expenditure incurred on the fixed assets leased under operating leases cannot be included in the cost of the fixed assets, and can only be included in the long-term amortization of expenses, which will be spread evenly over the agreed lease term.
The principle and method of accounting for "alteration expenditures on fixed assets under operating leases" are the same in both ASBE and SBA.
3. Expenditures for major repairs of fixed assets in accordance with the provisions of the tax law are amortized over the remaining useful life of the fixed assets.
Enterprise Income Tax Law, Article 13 (3) of the fixed assets referred to as major repair expenditures, refers to expenditures that meet the following conditions:
① repair expenditures to achieve the acquisition of fixed assets taxable base of more than 50%;
② repairs to the fixed assets after the extension of the useful life of more than 2 years.
Conformity with the above two conditions of the major repair expenditures, when incurred, debit "long-term amortized expenses" account, credit "raw materials", "bank deposits" and other subjects; the expenditure in the useful life of the fixed assets amortized over the period, debit the cost of the relevant assets or current profit and loss account, credit "long-term amortized expenses" account.
4. Other long-term amortized expenses, amortized from the month following the month in which the expenditure is incurred, the amortization period shall not be less than three years.
Long-term amortized expenses accounting entry how to write? In the long term amortization costs, you need to be clear about its specific amortization period, each month fixed amortization costs, so as to ensure that in the accounting process to fill in the figures are correct. Otherwise, make the right entry, but the specific amount of fill in the wrong, the final amount is still not flat.