What subjects are included in the purchase of equipment?
The purchase of equipment is included in the fixed assets account.
Accounting treatment of purchased fixed assets:
No installation required:
Borrow: fixed assets
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
Devices to be installed:
When purchasing the installation product.
Borrow: Construction in progress.
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
Pay installation fees, etc.
Borrow: Construction in progress.
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
When the equipment is installed and delivered for use.
Borrow: fixed assets
Loan: Construction in progress.
Accounting entries for depreciation of fixed assets
First of all, we should make clear the purpose of fixed assets and determine the debit account of accumulated depreciation. For example, fixed assets used for administrative management debit management fees; Used for the sales department to debit the sales expenses; Used to debit manufacturing expenses by production related departments. The accounting entries are as follows:
Debit: Manufacturing expenses (workshop depreciation)
Management expenses (depreciation of enterprise management department and unused fixed assets)
Sales expenses (depreciation is accrued by the sales department established by the enterprise)
Other business expenses (depreciation of fixed assets rented by enterprises)
R&D expenditure (depreciation of fixed assets when enterprises develop intangible assets)
Construction in progress (depreciation of fixed assets of construction in progress)
Credit: accumulated depreciation