(a) houses, buildings, for 20 years;
(b) aircraft, trains, ships, machines, machinery and other production equipment, for 10 years;
(c) with the production of business activities related to the appliances, tools, furniture, etc., for 5 years;
(d) aircraft, trains, ships other than the
(e) Electronic equipment, 3 years.
Commonly used depreciation methods
1. Average life method Average life method, also known as the straight-line method, is a method of depreciation of fixed assets spread evenly over the period. The amount of depreciation calculated using this method is equal for each period.
The formula is as follows: Annual depreciation rate = (1 - estimated net salvage rate) / estimated useful life × 100%
Monthly depreciation rate = annual depreciation rate ÷ 12
Monthly depreciation = original cost of the fixed assets × monthly depreciation rate
The depreciation rate calculated above is based on the individual fixed assets are individually calculated, referred to as the individual Depreciation rate, that is, the ratio of the depreciation of a fixed asset over a certain period of time to the original cost of the fixed asset.
2. Workload method The workload method is a method of depreciation based on actual workload. This method can make up for the average life method only heavy use of time, do not take into account the shortcomings of the intensity of use, the formula is:
Each workload depreciation = { fixed assets original price × (1 - salvage rate)
The total expected workload of a fixed asset monthly depreciation = the fixed asset workload of the month × the first workload depreciation
The accelerated depreciation method. > 3. Accelerated depreciation method Accelerated depreciation method is also known as rapid depreciation method or declining depreciation method, which is characterized by more depreciation in the first part of the effective life of the fixed assets, and less depreciation in the later part of the depreciation, thus relatively accelerated depreciation speed, so that the cost of the fixed assets to accelerate the compensation in the effective life of the fixed assets.
There are two commonly used accelerated depreciation method:
(1) double declining balance method Double declining balance method is a method of calculating depreciation of fixed assets based on the net book value of fixed assets at the beginning of each period and double straight-line depreciation without considering the salvage value of fixed assets. The formula is as follows:
Annual depreciation rate = 2/expected depreciable life × 100%
Monthly depreciation rate = annual depreciation rate ÷ 12
Monthly depreciation = net book value of fixed assets × monthly depreciation rate
(2) sum-of-the-years method Sum-of-the-years method, also known as the aggregate life method, is the original value of the fixed assets minus net salvage net amount and a declining fraction of the calculation of the annual discount. Decreasing fraction to calculate the amount of depreciation each year, the numerator of this fraction represents the number of years the fixed assets can still be used, the denominator represents the number of years of use of the year-by-year numerical sum.
Calculation formula:
Annual depreciation rate = remaining useful life / expected life of the total number of depreciation
or: annual depreciation rate = (expected life - has been used) / (expected life × {expected life + 1} ÷ 2 × 100%
Monthly depreciation = annual depreciation rate ÷ 12
Monthly depreciation = (original value of fixed assets - estimated net salvage value) × monthly depreciation rate
Still to illustrate the previous example, if the sum-of-the-years method is used to calculate the depreciation of each year is as follows:
Original value - net salvage value Depreciation per year Accumulated depreciation
Depreciation entries:
Debit: Administrative Expenses
Debit: Manufacturing Expenses
Debit: Selling Expenses
Credit: Accumulated Depreciation
Question 2: What are the rules for depreciation of fixed assets Fixed Asset Guidelines stipulate that an enterprise should depreciate all fixed assets, except for those fixed assets that continue to be used even though they have been depreciated to the fullest extent, and the land that is separately valued and accounted for.
① fixed assets should be depreciated monthly. Fixed assets should be depreciated from the time they reach the intended state of use, derecognition or classified as non-current assets held for sale to stop depreciation. In order to simplify the accounting, the fixed assets application guide still follows the practice: fixed assets increased in the month, no depreciation in the month, depreciation from the next month; fixed assets decreased in the month, the month is still depreciated, no depreciation from the next month. This is also consistent with the provisions of the tax law.
② fixed assets fully depreciated, regardless of whether they can continue to use, are no longer depreciated, early retirement of fixed assets are no longer depreciated. The so-called full depreciation means that the fixed assets have been fully depreciated amount accrued.
③ has reached the intended use of the state but not yet for the completion of the final accounts of fixed assets, should be determined in accordance with the estimated value of its cost, and depreciation; to be handled by the final accounts of the completion of the actual cost of adjusting the original tentative value, but do not need to adjust the original amount of depreciation has been accrued.
④ For fixed assets under finance leases, when determining the depreciable life should consider whether it is reasonably certain that the lessee will obtain ownership of the asset at the end of the lease term.
For example, the lease term of an equipment under finance lease is 3 years, and it can be used for 5 years. If it is not reasonably certain that the lessee will acquire ownership of the asset at the end of the lease term, depreciation should be provided over 3 years, and if it is reasonably certain that the lessee will acquire ownership of the asset at the end of the lease term, depreciation should be provided over 5 years.
⑤ Fixed assets in the process of renewal and renovation out of use, no depreciation
⑥ Fixed assets out of use due to major repairs, depreciation
What are the provisions of the fixed assets depreciable life?
(a) houses, buildings, 20 years;
(b) aircraft, trains, ships, machinery, machinery and other production equipment, 10 years;
(c) appliances, tools, furniture and other production-related activities, 5 years;
(d) means of transportation other than airplanes, trains and ships, 4 years;
(e) electronic equipment, 3 years. (v) electronic equipment, for 3 years.
Question 3: How to depreciate fixed assets? Fixed asset depreciation has a straight-line method, workload method, double balance incremental method and other collective methods. Now enterprises generally use the straight-line method of depreciation, the following is the knowledge:
1. Fixed assets: accounting can be based on the needs of the enterprise to determine, not too rigid provisions Tax law has clear provisions, however, if the accounting treatment is not dealt with in accordance with the provisions of the tax law, it is necessary to declare the corporate income tax returns when the need to make tax adjustments, it is more cumbersome, and more time-consuming, so the general Therefore, we generally refer to the provisions of the tax law to deal with. Article 60 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that: In addition to the provisions of the State Council department in charge of finance and taxation, the minimum depreciation period for fixed assets shall be as follows: (a) houses, buildings, 20 years; (b) airplanes, trains, ships, machinery, machines and other production equipment, 10 years; (c) appliances, tools, furniture, etc., related to production and business activities, 5 years; (d) the production and business activities, 5 years; (e) the production and business activities, 5 years; (f) the production and business activities, 5 years. (c) apparatus, tools, furniture, etc. related to production and business activities, for 5 years; (d) means of transportation other than aircraft, trains and ships, for 4 years; (e) electronic equipment, for 3 years.
2. Calculation formula: the residual value rate is generally taken as 5%.
Monthly depreciation = (original value - salvage value) / life / 12.
Monthly depreciation rate = monthly depreciation / original value
3. The relevant sub-record: Borrow: Manufacturing costs - depreciation (depreciation of production equipment),
Borrow: Administrative expenses (management equipment depreciation)
Borrow: Cost of goods sold (sales of the department's depreciation)
Credit: Accumulated depreciation
Question 4: Do you depreciate fixed assets in the same month? According to "Accounting Standard No. 4 - Fixed Assets", enterprises should generally depreciate the fixed assets on a monthly basis and recognize the depreciation in the cost of the relevant assets or in profit or loss according to the purpose. Fixed assets increased in the month, no depreciation in the month, depreciation from the next month; fixed assets decreased in the month, depreciation in the month, no depreciation from the next month.
Fixed assets in the process of repair, renewal and renovation and out of use, if the repair, renewal of expenditures incurred in line with the conditions of recognition of fixed assets, should be transferred to construction in progress, to stop depreciation; if the repair, renewal of expenditures incurred in line with the conditions of recognition of fixed assets, should not be transferred to construction in progress, depreciation as usual.
Fixed assets fully depreciated, regardless of whether they can continue to use, are no longer depreciated; early retirement of fixed assets, no longer depreciated. The so-called full depreciation, means that the fixed assets have been fully depreciated the amount of depreciation accrued.
Question 5: How to prepare the accounting entries for depreciation of fixed assets in the financial sector this month? Debit: Administrative Expenses - Depreciation Credit: Accumulated Depreciation
Administrative expenses refers to the business administration for the organization and management of production and business activities and the costs incurred. Administrative expenses are period costs, in the period when they are incurred in the current loss or benefit. Including salaries and surcharges, labor union funds, employee education expenses, teacher training fees, outsourced training fees, housing fund, pension insurance premiums, unemployment insurance premiums, depreciation, office expenses, medical insurance premiums and so on.
Question 6: How do you account for accumulated depreciation and depreciation accruals? When accruing
Debit Expense Account Credit Accumulated Depreciation
In the process of depreciation, the fixed asset account is not applied, only the accumulated depreciation account is used.
Question 7: How to calculate the depreciation of the printer as a fixed asset? The printer can be used as an electronic device, and the tax law states that the useful life is 3 years, so you can depreciate it over 3 years.
Monthly depreciation = (original value of the equipment - estimated salvage value) / useful life / 12
It is recommended that the estimated salvage value is 0, because the printer really can not be sold for a few dollars when it is scrapped.
Question 8: depreciation of fixed assets can be depreciated on a yearly basis after the completion of the purchase of machinery and equipment according to the installation of the start of depreciation, monthly mention the best, if a year mention then that the cost of the month is not too big. Twitchy fruit to 2011 formally put into production, you can then accrue monthly
Question 9: Fixed assets to mention enough depreciation after the entry processing how to do? Full depreciation is still continuing to use without doing any accounting
In the disposal of the fixed assets that is scrapped or sold before doing the accounting
Borrow; Fixed Assets Cleanup 116
Accumulated Depreciation 3684
Credits; Fixed Assets 3,800