In carrying out activities, some heads of organizations use fixed assets. These assets include buildings, machinery, equipment and others. In accounting, transactions with property should be reflected on account 01.
What are fixed assets
Property, plant and equipment are assets that have a useful life of more than a year. They are not intended for resale and have a tangible form, that is, they can be seen, touched.
Fixed assets are classified into production and non-production. The first group includes machines, equipment (machine tools, for example), buildings. The second group includes those assets that do not take part in production, this can include kindergartens, clinics, etc.
Active and passive funds are also distinguished. Active people are directly involved in production, this includes machines, equipment. Buildings can be classified as passive.
Receipt of fixed assets
Property can come to the organization from various sources, for example, from the founders, as a result of a purchase, under a gratuitous agreement, etc. Commissioning should be carried out on the basis of the order of the head. After signing it, the accountant draws up an act of acceptance and transfer of the asset (form No. OS-1, form No. OS-1a or form No. OS-1b).
Also, an inventory card (form No. OS-6, form No. OS-6a or form No. OS-6b) must be kept on the fixed asset and an inventory number must be assigned.
Fixed asset acquisition transactions
In accounting, commissioning should be reflected as follows:
- If the property is received from the founders:
Д75.1 К80 - reflects the founders' debt on deposits;
D08 K75.1 - the assets were transferred to the account of the contribution to the authorized capital;
D01 K08 - assets were put into operation.
- If the property is purchased from suppliers:
D08 K60 - funds were paid to the supplier for fixed assets;
D08 K76 (60, 23) - the amount of expenses for the delivery of fixed assets is reflected;
D01 K08 - the fixed asset was put into operation.
Valuation of fixed assets
Tangible assets must be valued. This can be done in several ways:
- at initial cost;
- at the residual value;
- at replacement cost.
The original cost is the cost you paid when you purchased the product (excluding VAT). If the asset was manufactured by you, this cost includes costs incurred in the manufacturing process. If the fixed asset has passed to you under a gift agreement, the value is determined based on market prices.
Residual value is defined as the difference between the initial cost and depreciation accrued in the process of use.
The replacement value is the value that is determined during the revaluation process, that is, you must value the assets in accordance with their current market value.
Fixed asset revaluation transactions
If you are increasing the value of an asset, make the entries:
- D01 K83 or 91.1 - the cost of fixed assets has been increased;
- Д83 or 91.2 К02 - the amount of accrued depreciation has been increased.
If you are reducing the value of assets, reflect it as follows:
- Д83 or 91.2 К01 - the cost of fixed assets has been reduced;
- D02 K83 or 91.2 - the amount of depreciation deductions has been reduced.
