Depreciation of fixed assets is generally for fixed assets.
Purchase of machinery and equipment room to do:
Borrow: fixed assets - XX machinery and equipment
Credit: bank deposits
Accrual of depreciation to do:
Borrow: manufacturing costs - depreciation expense
Credit: accumulated depreciation
Amortization is generally referred to as expenses.
Such as the payment of two years of office rental fees to do:
Borrow: long-term amortized expenses - rental fees
Loan: bank deposits
Amortization of the rental fee according to the use of time to do:
Borrow: administrative expenses - rental fees
Loan: long-term amortized expenses - rental fees
Accumulated depreciation is generally referred to as an expense. Expanded:
Fixed asset depreciation, is the part of the value of fixed assets in the use of the process of gradual depletion and transferred to the goods or expenses, but also in the production and operation of enterprises in the process of fixed assets due to the use of fixed assets in the use of fixed assets in its useful life of the fixed asset depletion is assessed. Determine the scope of depreciation of fixed assets is the premise of depreciation.
Acquisition Value Composition (all reasonable and necessary expenditures incurred before reaching the intended state of use) = Price (including VAT) + Freight and miscellaneous charges + Packing costs + Installation costs + Taxes + (capitalized) interest on borrowings + Foreign currency borrowing discount difference + Apportioned wages of engineering personnel + Professional service fees + Other indirect costs (Deed Tax, Vehicle Purchase Tax, Cultivated Land Occupation Tax, etc.).
Borrow: Fixed Assets
Credit: Bank Deposit
Reference: