What is the residual value of equipment left to scrap

1. How much of the residual value of the equipment can be scrapped?

Generally on the residual value of fixed assets, are the first to determine the residual value of the rate, and then calculate the estimated residual value, but also according to the market to determine the first residual value of the recovery price, determine the residual value of the rate. Enterprise residual value rate generally choose 5% more.

For example, fixed assets - machinery and equipment, purchased for 10,000 yuan, the use of 10 years, the residual value rate of 5%,

Residual value amount = 10,000 * 5% = 500

Monthly depreciation = (10,000 * (1-5%)) / 10 * 12 = 79.17 yuan

Fixed assets should be scrapped through the fixed asset liquidation Accounting;

that is: debit: fixed assets liquidation 500

debit: accumulated depreciation 9500

credit: fixed assets - machinery and equipment 10,000

2. fixed assets scrapped, the recovery of salvage value of income should be credited to fixed assets liquidation account.

Borrow: bank deposits

Credit: fixed assets cleanup