The specific accounting entries are as follows:
(1) Transferring the original cost of fixed assets to the fixed asset cleanup
Borrowing: Fixed Asset Cleanup
Accumulated Depreciation
Allowance for Impairment of Fixed Assets
Crediting: Fixed Assets
(2) At the time of disposal, the acquisition of the price
Borrowing: bank deposits
Credit: Fixed Assets Liquidation
(3) Value-added tax paid at the time of sale
Debit: Fixed Assets Liquidation
Credit: Taxes Payable - Value-added Tax Payable (Sales Tax)
(4) Compensation receivable from the insurer or the relevant liable person
Debit: Other Accounts Receivable
Credit: Fixed Assets Liquidation
(5) If the equipment still has salvage value
Borrow: Raw Materials
Credit: Fixed Asset Liquidation
(6) Finally, the net gain or loss from disposal is transferred to current profit or loss
If it is a net loss from liquidation
Borrow: Non-operating Expenses - Loss on Disposal of Non-current Assets
Credit: Fixed Asset Liquidation
Net Gain from Disposal
Debit: Fixed Asset Liquidation
Credit: Non-Operating Income - Gain on Disposal of Non-Current Assets