First of all, according to the provisions of the accounting system, institutions need to make two entries to purchase fixed assets, debit "business expenses", "non-operating expenses" or other cost and expense accounts, and credit "bank deposits" accounts;

At the same time, debit the "fixed assets" account and credit the "fixed fund" account. In this way, the net assets were inflated from the beginning. Secondly, the fixed assets of public institutions are not depreciated, and the subject of "fixed assets" on the books always reflects the original value of fixed assets.

Thirdly, according to the original system, the fixed assets of public institutions include two types: one is general equipment with unit value above 500 yuan; Second, the unit value is above 800 yuan, the service life is above one year, and the original material form is basically maintained during use. "Accounting System for Enterprises" stipulates that "items that are not the main equipment for production and operation, with a unit value of more than 2,000 yuan and a service life of more than 2 years" are classified as fixed assets. For the general equipment and special equipment of institutions, most of them are used for inspection and testing, not the main equipment for production and operation, so many institutions' instruments and equipment do not meet the fixed assets standards of enterprises after transformation.

The above three situations have caused the inflated net assets of public institutions, which should be dealt with according to different situations: the fixed assets should be thoroughly inspected, and the "fixed assets" and "fixed funds" should be written off at the same time according to the original value after approval, and then the remaining intact fixed assets should be evaluated. Among them, for those who do not meet the standards of fixed assets of enterprises, the subjects of "low-value consumables" shall be debited according to the net value confirmed by the assessment, and the subjects of "public funds-general funds" shall be credited, and the subjects of "fixed assets" and "fixed funds" shall be deducted according to the original value; For those who meet the enterprise's fixed assets standards, you can use the old account of fixed assets to transfer the difference between the original value and the net value confirmed by the assessment from the "fixed fund" account to the "accumulated depreciation" account, so that the "fixed fund" account reflects the net value of fixed assets.