Fixed asset scrapping is fixed assets due to participation in production or some special reasons, the loss of its value and the use of waste. Fixed assets scrapped, should first be used by the department and the fixed asset management department to apply, according to the object of scrapping and cleaning up to fill in the "fixed asset scrapping", detailing the technical condition of the fixed assets and the reasons for scrapping, by the relevant departments for technical appraisal, by the business leader or the higher authorities approved as a fixed asset cleaning business vouchers, according to the cleanup. After review and approval by the relevant departments of the "fixed assets scrapped", should be sent to the accounting department, as the basis for the organization of fixed assets liquidation accounting.
Fixed assets scrapped, destroyed, its net book value after deducting the salvage value, insurance compensation and compensation for the responsible person, based on the following evidence to determine the loss:
(a) the identification certificate issued by the relevant departments within the enterprise;
(b) a large amount of single or batch of fixed assets scrapped, destroyed, the enterprise should make a special explanation of each item. Enterprises should make a special description of each item, and entrusted with the qualification of technical appraisal of the identification of institutions, issued by the appraisal of the description;
(c) force majeure reasons (natural disasters, accidents, war, etc.) caused by the destruction and scrapping of fixed assets, there should be the identification report issued by the relevant functional departments, such as the fire department issued by the proof of the disaster, the public security department issued by the accident scene processing report, vehicle damage report Proof, housing management department of the house demolition certificate, boilers, elevators and other security departments of the inspection report, etc.;
(d) the enterprise fixed assets scrapped, destroyed the situation description and internal approval documents;
(e) involves an insurance claim, there should be an insurance company to settle the claim description.
Fixed assets scrapped in two cases: one is due to wear and tear or obsolescence, the expiration of the period of use can not continue to use; the second is due to technological advances, must be replaced by advanced equipment. Fixed assets scrapped, on the one hand, due to fixed assets out of the enterprise caused by the reduction of fixed assets, on the other hand, in the process of cleaning up some of the clean-up costs will occur, but also may be able to obtain a certain amount of income from the change in value. Therefore, the accounting for fixed assets scrapped should be carried out in accordance with the following procedures:
(1) write off the original value of fixed assets scrapped and depreciated. According to the net value of fixed assets, debit "fixed assets clearance" account; according to the depreciation amount, debit "accumulated depreciation" account; according to the original value of fixed assets, credit "fixed assets" account.
(2) carry forward the residual value and realization of income. According to the recovery of the residual value and the realization of income, debit "bank deposits", "raw materials" and other accounts, credit "fixed assets" account.
(3) Payment of liquidation costs. According to the cleaning costs incurred, debit "fixed assets cleaning" account, credit "bank deposits" and other accounts.
(4) carry forward the net gain or loss after liquidation. Fixed assets after liquidation of the net gain, debit "fixed assets cleanup" account, credit "non-operating income - dealing with fixed assets gain" account; fixed assets after liquidation of the net loss, debit "non-operating expenses - dealing with fixed assets loss" account, credit "fixed assets cleanup" account.