Some organizations use their vehicles to carry out any operations. He, like any fixed asset, wears out. In this case, it must be liquidated, and in accounting it must be written off. In this case, it is not necessary that all of its value was written off due to depreciation. What is the procedure for writing off a car?
Instructions
Step 1
Before writing off a fixed asset, the manager must draw up an order on the further conduct of a commission, which makes a decision on the disposal or restoration of the fixed asset. The commission should include the persons responsible for the vehicle, the chief accountant, and officials.
Step 2
After that, these persons inspect the vehicles, establish the reasons that led to the write-off, and also identify the perpetrators. The commission can establish the availability of working parts or materials in the car, the assessment and the possibility of using them in the future.
Step 3
At the end of the check, the responsible persons draw up an act on the write-off of fixed assets (form No. OS-6), where they enter all the data on the written-off fixed asset. After that, this document is signed by the head.
Step 4
In the case when some components remain from the vehicle, they can be re-capitalized. This is done using account 10 "Materials", to which account 91 "Other expenses and income" is credited. These stocks are accounted for at market value.
Step 5
When writing off vehicles, the following entries are made in the accounting records: D01 "Fixed assets" subaccount "Disposal" K 1 - the initial cost of the retiring vehicles was written off;
D02 "Depreciation of fixed assets" К 1 "Fixed assets" - the depreciation amount for the retired fixed assets has been written off;
D91 "Other income and expenses" subaccount "Expenses" K01 "Fixed assets" - the residual value of the vehicle is reflected as part of other expenses.
Step 6
Also, in accounting, it is necessary to reflect the amounts spent on the liquidation of the object. This information should be contained in the act on the write-off of fixed assets in section 5. D91 "Other expenses" K70 "Payments with staff for wages" and 69 "Payments for social insurance and security" - reflects the amount spent on wages and social costs, workers involved in the elimination of vehicles.
Step 7
In tax accounting, the amount associated with the liquidation of vehicles is included in non-operating expenses. Income received from liquidation, for example, the amount for scrap metal, is recognized as non-operating.
