Depreciation accounting entries

Accounting entries for depreciation of fixed assets for the month:

Borrow: Administrative Expenses/Manufacturing Expenses/Sales Expenses

Credit: Accumulated Depreciation

Depreciation of fixed assets is charged to the following accounting entries:

1. Fixed assets used in the basic production plant of an enterprise are depreciated to manufacturing expenses;

2. Fixed assets used in management are depreciated to administrative expenses;

3. The depreciation of fixed assets used by the management is included in administrative expenses;

3. The depreciation of fixed assets used by the sales department is included in selling expenses;

4. The depreciation of fixed assets used in the process of self-built fixed assets is included in the cost of construction in progress;

5. The depreciation of fixed assets leased out from operation is included in the cost of other operations;

6, Depreciation of unused fixed assets is charged to administrative expenses.

Depreciation needs to distinguish between the accounting period and the depreciation period, which are not necessarily the same period. Depreciation period refers to the beginning of the depreciation in order to extend the number of years, let's say from March 2000 to start depreciation, for depreciation of the first year is March 2000 to March 2001; while the accounting period in our country usually refers to the annual January 1 to December 31st.

The common methods of depreciation of fixed assets are the average life method, the workload method, the double declining balance method and the sum-of-the-years method. The following by introducing the calculation of each depreciation method to illustrate the depreciation should pay attention to the content.

Baidu Encyclopedia - Depreciation