At the time of purchase:
Borrow: special fund-repair and purchase fund
Credit: other payables
Borrow: fixed assets
Loan: non-current assets fund-fixed assets
When paying:
Debit: Other payables
Loans: bank deposits
If the company withdraws depreciation:
At the time of purchase:
Debit: operating expenses-purchasing expenses
Credit: other payables
Borrow: fixed assets
Loan: non-current assets fund-fixed assets
When paying:
Debit: Other payables
Loans: bank deposits
Accounting treatment of fixed assets to accounts?
The fixed assets debt repayment account is handled as follows:
Turn the equipment into a clean state:
1. Borrow: fixed assets clearing.
2. Accumulated depreciation.
3. Loans: fixed assets.
Pay off debts with invoicing equipment:
1. Debit: accounts payable-Company B.
2. Loan: fixed assets clearing.
3. Taxes payable-VAT payable (output tax).
Accounting entries for repaying debts with fixed assets:
1. Debit: fixed assets liquidation (original value-accumulated depreciation amount).
2. Debit: accumulated depreciation (accumulated depreciation amount).
3. Loan: fixed assets (original value).
After paying off debts (book balance treatment after paying off debts):
1. Debit: accounts payable (or other payables) -XXX (amount owed).
2. Loan: fixed assets liquidation (fixed assets liquidation amount):
3. Loan: non-operating income (liquidation amount is less than the amount owed) or: debit: accounts payable (or other payables) -XXX (amount owed).
4. Borrowing: non-operating expenses (the settlement amount is greater than the amount owed).
5. Debit: fixed assets liquidation (fixed assets liquidation amount).
Fixed assets cleaning:
Fixed assets cleaning refers to the identification, scrapping, asset write-off and residual value disposal of fixed assets that have lost their production capacity due to wear and tear, suffered catastrophic accidents or have to be eliminated and updated due to obsolescence.
"Liquidation of fixed assets" is an asset account, which is mainly used to calculate the net value of fixed assets transferred to liquidation due to sale, scrapping, damage and other reasons, as well as the liquidation expenses and liquidation income incurred in the liquidation process.
The borrower shall register the net value of fixed assets transferred to liquidation and the expenses incurred during liquidation, and the lender shall register the price, residual value and sales income of fixed assets. Debit balance represents the net loss after liquidation, and credit balance represents the net income after liquidation. After the liquidation, the debit or credit balance should be transferred to the subject of "non-operating income" or "non-operating expenditure".