Accounting for Fixed Assets

(1) When selling, scrapping and destroying fixed assets to be transferred to liquidation,

Debit: Fixed Assets Liquidation (book value of fixed assets transferred to liquidation) Accumulated Depreciation (depreciation provided)

Provision for Impairment of Fixed Assets (provision for impairment has been made)

Loan: Fixed Assets (original book value of fixed assets)

(2) When incurring liquidation When liquidation costs are incurred,

Debit: Fixed Assets Liquidation

Credit: Bank Deposits

(3) When calculating the business tax to be paid, the enterprise sells real estate, such as houses, buildings, etc., and according to the relevant provisions of the Tax Law, the business tax should be calculated on the basis of the sales of the enterprise

Debit: Fixed Assets Liquidation

Credit: Taxes Payable - Business Tax Payable

Debit: Fixed Assets Liquidation

Credit: Taxes Payable -Business Tax Payable

(4) When recovering the price, salvage value and realization income from the sale of fixed assets,

Borrow: Bank Deposit

Raw Materials, etc.

Credit: Fixed Asset Liquidation

(5) When compensation should be paid by the insurance company or the negligent person,

Borrow: Other Accounts Receivable

Credit: Other Accounts Receivable

Credit: Other Accounts Receivable

Credit: Other Accounts Receivable

Credit: Other Accounts Receivable

Credit: Other Accounts Receivable<

Credit: Fixed Asset Liquidation

(6) Net gain from fixed asset liquidation,

Debit: Fixed Asset Liquidation

Credit: Long-term Amortized Expenses (belonging to the period of preparation)

Non-operating Income - Net Gain from Disposal of Fixed Assets (belonging to the period of production and operation) ) (7) Net loss on liquidation of fixed assets,

Debit: Long-term amortized expenses (belonging to the period of preparation)