When the enterprise depreciates the purchased equipment according to the regulations, the actual situation is different and the accounting subjects involved are different. When equipment depreciation expense is accrued, what subjects are included? How to make accounting entries?

What account is used to calculate equipment depreciation expenses?

Depreciation expense of equipment accrued is included in this account:

Depreciation of fixed assets used in the basic production workshop of an enterprise is included in the manufacturing expenses;

Depreciation of fixed assets used by management departments is included in management expenses;

Depreciation of fixed assets used by the sales department is included in the sales expenses;

Depreciation of fixed assets used in the process of self-construction of fixed assets is included in the cost of construction in progress;

Depreciation of fixed assets leased from operation is included in other business costs;

Depreciation of unused fixed assets is included in management expenses.

Equipment depreciation entry

Debit: Manufacturing expenses (workshop depreciation)

Management expenses (depreciation of enterprise management department and unused fixed assets)

Sales expenses (depreciation is accrued by the sales department established by the enterprise)

Other business expenses (depreciation of fixed assets rented by enterprises)

R&D expenditure (depreciation of fixed assets when enterprises develop intangible assets)

Construction in progress (depreciation of fixed assets of construction in progress)

Credit: accumulated depreciation

Accounting entries for purchasing equipment

No installation required:

Borrow: fixed assets

Taxes payable-VAT payable (input tax)

Loans: bank deposits, etc.

Devices to be installed:

When purchasing the installation product.

Borrow: Construction in progress.

Taxes payable-VAT payable (input tax)

Loans: bank deposits, etc.

Pay installation fees, etc.

Borrow: Construction in progress.

Taxes payable-VAT payable (input tax)

Loans: bank deposits, etc.

When the equipment is installed and delivered for use.

Borrow: fixed assets

Loan: Construction in progress.

What do you mean by fixed assets?

Fixed assets refer to tangible assets with the following characteristics:

1. held for the purpose of producing goods, providing services, renting or operating;

2. The service life exceeds one fiscal year.