Problem description:

How to record the residual value after receiving scrapped equipment? Cash.

be badly in need of

Analysis:

When cleaning up scrapped fixed assets, the following accounting entries should generally be made:

1. Scrapped fixed assets transferred to liquidation:

Debit: liquidation of fixed assets (if depreciation is withdrawn, the calculation result here should be net salvage value)

accumulated depreciation

Loans: fixed assets

2. Income from the sale of scrapped fixed assets:

Borrow: cash

Loan: liquidation of fixed assets

3. Cleaning expenses paid

Debit: liquidation of fixed assets

Credit: cash

4. If the carry-over of scrapped fixed assets is a net loss (referring to residual income)

Debit: non-operating expenses-net loss of fixed assets

Loan: liquidation of fixed assets

5. If the carry-over of scrapped fixed assets leads to net loss (refers to scrapped income >; Differences in cleaning costs)

Debit: liquidation of fixed assets

Loan: non-operating income-net income of fixed assets.

Remarks: Business tax (5% tax rate) shall be accrued for the sale of real estate. Business tax payable = actual transaction price × 5%.

The tax rate shall be subject to the actual notice of the local tax authorities.

Entry:

Debit: liquidation of fixed assets

Loan: taxes payable-business tax payable