When depreciation is calculated:
Debit: management (sales, manufacturing) expenses --- depreciation expense
Credit: accumulated depreciation
When fixed assets are disposed of and scrapped
Borrow: Fixed assets liquidation
Accumulated depreciation
Provision for impairment of fixed assets (do not write this entry if you don’t have one)
Credit: fixed assets
When the residual value income is received from the disposal and scrapping of fixed assets
Debit: cash on hand (bank deposit)
Credit: Fixed assets liquidation
The "accumulated depreciation" account is an asset-type allowance adjustment account. Its structure is exactly the opposite of that of a general asset account. Accumulated depreciation is an increase in credit registration, a decrease in debit registration, and the balance is Lender. Accumulated depreciation refers to the accumulated depreciation of fixed assets drawn by the enterprise at the end of the reporting period. This indicator is filled in based on the ending amount of the "accumulated depreciation" item in the accounting "balance sheet". Extended information
The Enterprise Income Tax Regulations have the following provisions on the depreciation of fixed assets:
1. Fixed assets that should be depreciated. Including houses and buildings; machinery and equipment, transportation vehicles, appliances and tools in use; machinery and equipment that are temporarily out of service and out of service for major repairs; fixed assets rented out by operating leases; fixed assets rented out by financial leases; Assets; other fixed assets for depreciation determined by the Ministry of Finance.
2. Depreciation of fixed assets shall not be withdrawn. Including land, houses, and buildings that are not used or not needed. Sealed fixed assets; Fixed assets rented under operating leases; Fixed assets that have been fully depreciated and continue to be used; Fixed assets for which maintenance and inspection fees have been withdrawn in accordance with regulations; Fixed assets that have been included in the cost in one lump sum; Bankruptcy Close the fixed assets of the enterprise.
3. Methods and basis for extracting depreciation. Taxpayers’ fixed assets shall accrue depreciation from the month following the month they are put into use; fixed assets that cease to be used shall cease accruing depreciation from the month following the month they cease use. Before calculating depreciation of a fixed asset, the residual value should be estimated and deducted from the original price of the fixed asset. The residual value ratio should be within 5% of the original price and shall be determined by the enterprise itself.
Baidu Encyclopedia - Accumulated depreciation