What account is used to charge depreciation expense on equipment? How to do accounting entries?

Enterprises in accordance with the provisions of the purchase of equipment for depreciation processing, the actual situation is different, the accounting entries are also different. Depreciation of equipment, accounting for what accounts? How to make accounting entries?

What accounts are used to account for depreciation of equipment?

Accounting for depreciation of equipment through the accounts:

Fixed assets used in the basic production workshop of the enterprise, the depreciation of which is charged to manufacturing costs;

Fixed assets used in the management department, the depreciation of which is charged to administrative expenses;

Fixed assets used in the sales department, the depreciation of which is charged to the cost of goods sold;

The fixed assets used in the process of self-construction of fixed assets, their depreciation is charged to the cost of sales;

Building fixed assets on their own Fixed assets used in the process of self-construction are depreciated to the cost of construction in progress;

Fixed assets leased out for operation are depreciated to other operating costs;

Fixed assets not in use are depreciated to administrative expenses.

Equipment depreciation entries

Borrow: manufacturing costs (production plant depreciation)

Management costs (business management, unused fixed assets depreciation)

Selling expenses (business dedicated sales department depreciation)

Other operating costs (business leased out of fixed assets depreciation)

R&D Expenditures (depreciation of fixed assets used in research and development of intangible assets)

Construction in progress (depreciation of fixed assets used in construction in progress)

Credit: Accumulated depreciation

Accounting entries for the purchase of equipment

Not to be installed:

Borrow: Fixed assets

Taxes and expenses payable- -VAT payable (input tax)

credit: bank deposits, etc.

Equipment to be installed:

Purchase for installation

Borrow: construction in progress

Tax payable - VAT payable (input tax)

credit: bank deposits, etc.

Purchase of equipment to be installed:

Borrow: fixed assets

Borrow: capital expenditure

Contributions to VAT payable - VAT payable (input tax)

Credit: bank deposits, etc.

Payment of installation fees, etc.

Borrow: construction in progress

Taxes payable - VAT payable (input tax)

Credit: bank deposits, etc.

When the equipment is installed and delivered to use

Borrow: Fixed Assets

Credit: Construction in Progress

What does Fixed Assets mean?

Fixed assets are tangible assets that have the following characteristics at the same time:

1. Held for the production of goods, the provision of labor services, leasing, or business management;

2. With a useful life of more than one fiscal year.