Scrapping entries:
Borrow: Fixed Fund
Loan: Fixed Assets
Recovery of salvage value realization income
Borrow: Bank Deposits
Loan: Other Accounts Payable
For those who don't meet the standard of fixed assets of the enterprise, they should be recognized according to the evaluation of the net value:
Borrow: Low-Value Consumable
Borrow: Low-Value Consumable
Loan: Low-Value Consumable
Loan: Low-Value Consumable
Credit: Business Fund - General Fund
Extended Information: There are two entries required when an organization purchases a fixed asset, debiting "operating expenses", There are two entries to be made when an organization purchases fixed assets, debiting the "business expenses", "operating expenses", or any other cost and expense accounts, and crediting the "bank deposits" account. "Fixed Fund" account. In this way, from the very beginning, the net assets have been inflated. Secondly, the fixed assets of the organization are not depreciated, and the "Fixed Assets" account on the books always reflects the original value of fixed assets. Again, according to the original system, the fixed assets of institutions include two categories: One is general equipment with a unit value of 500 yuan or more, and the other is specialized equipment with a value of 800 yuan or more, a service life of more than one year and basically maintaining the original material form during use. And the "Enterprise Accounting System" stipulates that "items not belonging to the main equipment for production and operation, with a unit value of more than 2,000 yuan and a service life of more than two years" are classified as fixed assets. For the general and specialized equipment of the institutions, most of them are used for testing and inspection, and do not belong to the main equipment for production and operation, so many instruments and equipment of the institutions are not in line with the standard of fixed assets of the enterprises after the conversion. The above three situations have caused the net assets of the institutions of the false increase, so should be differentiated from different situations to deal with: To carry out a thorough inventory of fixed assets, scrapping, destruction and loss of fixed assets should be approved at the same time according to the original value of the "fixed assets" account and the "fixed fund" account. "Fixed Fund", and then assess the remaining fixed assets that are still intact. For those fixed assets that do not meet the standard of enterprise fixed assets, the net value recognized by the assessment should be debited to the account of "low-value consumables" and credited to the account of "business fund - general fund", and at the same time, the original value should be deducted from the account of "fixed assets" and "fixed fund". For fixed assets that do not meet the standard of enterprise fixed assets, the net value should be debited to the "low value consumables" account and credited to the "enterprise fund - general fund" account, and at the same time, the original value should be deducted from the "fixed assets" and "fixed fund" accounts. For the fixed assets that meet the standards of the enterprise, you can continue to use the old accounts of fixed assets, and transfer the difference between the original value and the net value recognized by the assessment from the "fixed fund" account to the "accumulated depreciation" account, in this way, the "fixed fund" account. The "fixed fund" account reflects the net value of fixed assets. Baidu Encyclopedia - Fixed Fund of Institutions