Accumulated Depreciation and Accumulated Amortization both belong to the asset class of accounts
Accumulated Depreciation:The value of a fixed asset is averaged over the period of its useful life, and then charged to current profit or loss. It is the depreciation that is charged. Accumulation, as the name suggests, is the accumulation of the depreciated value of that asset charged in each period.
Accumulated amortization: Accumulated amortization is used to amortize intangible assets, the balance of which is generally in the credit side, the credit side of the registration of accumulated amortization has been provided. Similar to the accumulated depreciation account in fixed assets.
Accrued depreciation and amortization are due to the depreciation of fixed assets due to wear and tear occurring in the production process
Accrued depreciation: it is worth noting that the fixed assets purchased in the month, the month does not accrue depreciation, depreciation from the next month, the month of fixed assets out of service, the month of depreciation, depreciation as usual, the next month to stop the depreciation, so you purchased in the month fixed assets, you can not be depreciated in the month).
The significance of accumulated depreciation is the same as that of accumulated depreciation, but the accumulated depreciation is used as a subject of accounting entries.
Accumulated amortization: the depreciation of the whole year or several accounting periods in advance, to a certain accounting period for amortization. The meaning of the same with the accumulated amortization Accumulated amortization is used to make accounting entries.
Depreciation and accrual of certain links.
Depreciation and AmortizationThe difference between depreciation and amortization is:
1. Depreciation is an asset, amortization is an expense. Depreciation generally refers to the depreciation of fixed assets; amortization generally amortization of low value consumables, amortization of intangible assets, amortization of amortized expenses, amortization of long-term amortized expenses.
2, depreciation and amortization are gradually included in the cost of expenses, but the duration of the period of different. Depreciation of at least two years. And amortization in addition to long-term amortized expenses, are amortized within one year.
3, depreciation of fixed assets refers to the use of fixed assets in the process of gradual depletion and disappearance of that part of the value. This part of the value of the depletion of fixed assets should be apportioned over the effective life of the fixed assets, the formation of depreciation expense, included in the cost of each period.
4, amortization is the current month, should be incurred by the current month and subsequent months of product costs *** with the burden of the cost. Amortization of amortized expenses for a maximum period of one year. If more than one year, should be accounted for as a long-term amortized expenses.
5, depreciation and amortization are not calculated in the same way. Depreciation is calculated by: the average life method, also known as the straight-line method, the workload method, the double declining balance method, the sum-of-the-years method; and amortization is calculated by: an amortization method, amortization method, and so on.
Extended reading:
Amortization, refers to the accounting treatment of other than fixed assets, other operating assets that can be used over a long period of time in accordance with their useful life of the annual sharing of the acquisition cost, similar to the depreciation of fixed assets. Amortization expense is included in administrative expenses to reduce current profit, but has no effect on operating cash flow.
Commonly amortized assets such as large-scale software, intangible assets such as land use rights, and start-up costs, which can contribute to the company's business and revenues over a longer period of time, make it reasonable to apportion their acquisition costs over the years as well.
The amortization period is generally no more than 10 years, and like depreciation, the straight-line and accelerated methods can be chosen to amortize intangible assets. Amount-wise, the amortization is generally much smaller relative to depreciation expense, meaning that most companies have much larger fixed assets than intangible assets, so amortization and depreciation are generally disclosed together without distinction.
Depreciation, or fixed asset depreciation, is the systematic apportionment of accrued depreciation over the useful life of a fixed asset in accordance with a defined method. Useful life is the estimated life of a fixed asset, or the amount of product or labor that can be produced or provided by the fixed asset. Accrued depreciation is the original cost of a fixed asset that is subject to depreciation, less its estimated net residual value. Fixed assets for which provision for impairment has been made should also be deducted from the cumulative amount of provision for impairment of fixed assets that has been made.
What if the current year's depreciation amortization is greater than the accumulated depreciation amortizationThe current year's depreciation amortization is the current year's depreciation amount, and the accumulated depreciation amortization is the accumulated amortization from the start of the fixed assets to the point of calculation, which is greater than or equal to the former in terms of the amount of the latter.
This year's depreciation and amortization is greater than the accumulated depreciation and amortization, that is, the data is wrong, quickly find out where it sits
On the calculation of amortization and depreciationAmortization is determined on the basis of the value at the time of acquisition and the benefit period of the average amortization calculation
From your list of known conditions, it is clear that you have already begun to calculate the amount of amortization can be based on the number of reductions in the current period to determine the amount of amortization period
2, depreciation
3, amortization of expenses and intangible assets
4, carry forward manufacturing costs to production costs
5, raw materials out of the warehouse calculations (generally based on the weighted-average method)
6, carry forward the cost of production to finished goods or semi-finished products
7, finished goods out of the warehouse (carry forward the cost of goods sold)
8, the accrual of taxes ( urban construction tax, education tax surcharge, stamp duty, property tax, land value-added tax, etc.)
9, carry forward profit and loss accounts to the current year's profit
10, carry forward the current year's profit to the undistributed profit (you can also turn once a year)
If it is the end of the year, there are profits also have to be accrued surplus surplus, income tax expense, etc.
Baidu "cool shadow mode" you know
Why add depreciation amortization
1, depreciation generally refers to the depreciation of fixed assets; fixed assets depreciation:
Borrow: administrative expenses (or manufacturing costs, operating expenses) - depreciation expense
Credit: accumulated depreciation
2. Amortization is the amortization of expenses that cannot be entered into fixed assets. Such as amortization of long-term amortized expenses, amortization of intangible assets, amortization of amortized expenses, amortization of low value consumables.
(1) amortization of long-term amortized expenses
Borrow: administrative expenses - amortization of start-up costs
Credit: Long-term amortized expenses - start-up costs
(2) amortization of intangible assets
Borrow: administrative expenses - amortization of intangible assets
Credit: intangible assets
(3) amortization of low-value consumables
Borrow: Administrative Expenses - Amortization of Low-Value Consumables
Credit: Low-Value Consumables
(4) Amortization of Amortized Expenses
Borrow: Administrative Expenses (or Operating Expenses, Manufacturing Expenses)
Credit: Amortized Expenses - (Rent, Interest, Insurance Premiums, etc.)
What is the Account of Amortization of Long-Term Asset ValuesAccumulated Depreciation and Accumulated amortization both belong to the asset class account Accumulated depreciation: the value of a fixed asset is averaged over its useful life and then charged to current profit or loss. It is depreciation.
The current year depreciation amortization and accumulated depreciation, amortization is the sameThe two are not the same, the current year depreciation amortization is the current year depreciation amount, accumulated depreciation amortization is from the beginning of the use of fixed assets to the point of calculation of the cumulative amount of amortization, in terms of the amount of the latter is greater than or equal to the former.
Accumulated depreciation and accumulated amortization in which account1, "Accumulated Depreciation" account for the accumulated depreciation of fixed assets. Depreciation of fixed assets by period (month), debit "manufacturing costs", "selling expenses", "administrative expenses", "research and development expenditure "Manufacturing expenses", "Selling expenses", "Administrative expenses", "Research and development expenses", "Other operating costs" and so on, and credited to the account. Disposal of fixed assets should also be carried forward at the same time the accumulated depreciation. The closing credit balance of this account reflects the accumulated depreciation of fixed assets.
2, "Accumulated amortization" "account for the accumulated amortization of intangible assets with a limited useful life. Enterprise amortization of intangible assets by period (month), debit "administrative expenses", "other business costs" and other subjects, credit account. Disposal of intangible assets should be carried forward at the same time the accumulated amortization. Credit balance at the end of this account, reflecting the accumulated amortization of intangible assets.
Amortization of working capital is equivalent to the accumulated depreciation of fixed assets
Amortization of working capital is equivalent to the accumulated depreciation of fixed assets, but it is more like amortization of low-value consumables.
There are three methods of amortizing working capital materials: one-time amortization, fifty-fifty amortization, and split amortization.
First, the definition of working capital materials
Working capital materials refers to the enterprise can be used many times, and gradually transfer its value, but still maintain the original form of the material is not recognized as a fixed asset, used to account for the cost of working capital materials for the enterprise's planning or actual costs, including packaging, low-value consumables, and enterprises (construction contractors) of the steel templates, wooden templates, scaffolding and so on. Packaging and low-value consumables of enterprises can also set up a separate "packaging", "low-value consumables" account. My tip: whether the material belongs to the low value consumables is divided according to its nature, and has no direct relationship with the price and value. Turnover materials can be according to its type, respectively, "in storage", "in use" and "amortization" for detailed accounting.
Second, the main accounts of working capital materials.
(a) the enterprise purchased, self-made, commissioned the completion of processing and has been accepted into the warehouse turnover materials, etc., compared to the "raw materials" subject to the relevant provisions of the treatment.
(b) the use of a write-off method, the use should be according to its book value, debit "administrative expenses", "production costs", "selling expenses", "Construction" and other accounts, credited to the account. When the working capital materials are scrapped, the residual value of the scrapped working capital materials should be debited to "Raw Materials" and credited to "Administrative Expenses" and "Production Costs", "Cost of sales", "construction" and other subjects.
(c) the use of other amortization method, according to its book value should be used, debit this account (in use), credit account (in the library); amortization should be amortized according to amortization, debit "administrative expenses", "production costs", Amortization should be debited to "administrative expenses", "production costs", "selling expenses", "construction" and other subjects according to the amortization amount, and credited to the account (amortization). The amortization amount should be provided when the working capital materials are scrapped, and should be debited to the accounts of "administrative expenses", "production costs", "selling expenses", "construction", etc. and credited to the accounts of "construction". At the same time, according to the residual value of scrapped working capital materials, debit "raw materials" and other accounts, credit "administrative expenses", "production costs", "sales costs" and "sales costs". ", "selling expenses", "construction" and other subjects; and write off all amortization, debit this account (amortization), credit account (in use).
(d) the working capital materials using the planned cost of daily accounting, such as the use of working capital materials issued, should also be carried out at the same time the cost differences should be assessed.
Third, the significance of the closing balance
The closing debit balance of this account, reflecting the planned or actual cost of working capital materials in storage and the amortized value of working capital materials in use.