Generally, after depreciation is made, if it continues to be used, it will be recorded in the account first, and the book value will be the residual value of the fixed asset.

If the fixed assets are no longer in use after depreciation, the user department will submit a scrapping and other liquidation application, and the fixed assets will be liquidated according to the company's internal control procedures. After the residual value is sold, the accounting will be done:

Debit: Liquidation of fixed assets

Debit: Impairment losses on fixed assets

Debit: Accumulated depreciation

Credit: Fixed assets

Borrow: cash, etc.

Credit: liquidation of fixed assets

Transfer the balance of liquidation of fixed assets to non-operating income/expenses

Borrow: liquidation of fixed assets

Credit: Non-operating income

Or:

Debit: Non-operating expenses

Credit: Fixed assets liquidation

After the carry-forward, there will be no balance in the fixed assets liquidation account.

Extended information:

As for the depreciation life of fixed assets, in fact, the provisions in the "Enterprise Income Tax Law" and its implementation regulations are very clear. Article 60 of the "Regulations on the Implementation of the Enterprise Income Tax Law" stipulates that, unless otherwise specified by the financial and tax authorities of the State Council, the minimum number of years for calculating depreciation of fixed assets is as follows: (1) Houses and buildings, for 20 years;

(2) 10 years for airplanes, trains, ships, machines, machinery and other production equipment;

(3) Appliances and tools related to production and business activities , furniture, etc., for 5 years;

(4) Transportation vehicles other than airplanes, trains, and ships, for 4 years;

(5) Electronic equipment, for 3 years.

In addition to normal provision for depreciation, the finance and taxation departments have also issued relevant regulations on accelerated depreciation. According to the "Notice of the State Administration of Taxation on Issues Concerning the Income Tax Treatment of Accelerated Depreciation of Enterprise Fixed Assets" (State Taxation Development [2009] Article 3 of No. 81) stipulates that if an enterprise adopts the method of shortening the depreciation life, the new fixed assets purchased shall be depreciated.

The minimum depreciation period shall not be less than 60% of the depreciation period stipulated in Article 60 of the "Implementation Regulations"; if it is the purchase of used fixed assets, the minimum depreciation period shall not be lower than the "Implementation Regulations" 60% of the remaining years after deducting the prescribed minimum depreciation period from the service life. Once the minimum depreciation period is determined, it generally cannot be changed.

Main features

1. Fixed assets generally have a relatively large value, are used for a long time, and can participate in the production process repeatedly for a long time.

2. Although wear and tear occurs during the production process, it does not change its physical form. Instead, its value is gradually transferred to the product according to the degree of wear and tear, and the value transferred is partially recovered. A depreciation fund is then formed.

As the monetary expression of fixed assets, fixed funds also have the following characteristics:

1. The cycle period of fixed funds is relatively long. It does not depend on the production cycle of the product, but on the production cycle of the product. The useful life of fixed assets.

2. The value compensation and physical renewal of fixed funds are carried out separately. The former is gradually completed along with the depreciation of fixed assets, and the latter is accumulated with the usual money when the fixed assets cannot be used or are not suitable for use. Depreciation funds are used to achieve this.

3. When purchasing and constructing fixed assets, a considerable amount of monetary funds needs to be paid. This investment is a one-time investment, but the recovery of the investment is carried out through the depreciation of fixed assets in installments.