Fixed assets cleaning refers to the identification, scrapping, write-off and residual value treatment of assets. For fixed assets that have lost their production capacity due to wear and tear, suffered serious disasters and accidents, or have to be eliminated and updated because of obsolescence.
After technical appraisal and economic evaluation, the fixed assets are confirmed to be scrapped and transferred to liquidation, which means that the fixed assets are withdrawn from the production and operation process of the enterprise, and the original fixed capital investment is reduced accordingly. Therefore, the original price and depreciation of assets should be cancelled in accounting, and fixed funds should be reduced at the same time.
As an asset account, the extended data "Fixed Assets Clearing" is used to calculate the value of fixed assets transferred to clearing due to sale, scrapping, damage and other reasons, as well as the cleaning expenses and cleaning income during the cleaning process. The borrower's registered net fixed assets transferred to liquidation and the expenses incurred in the liquidation process;
The price, residual value and income of the fixed assets registered by the lender. Its debit balance represents the net loss after liquidation; The credit balance represents the net income after liquidation. After the liquidation, the net income will be transferred to "non-operating income" or "profit and loss from asset disposal" according to the asset value; The net loss is transferred to the "non-operating expenses" account or the "asset disposal gains and losses" account.
Baidu Encyclopedia-Fixed Assets Clearing