Almost all organizations use fixed assets in their work. This is a property that has a useful life of more than a year. But, as a rule, everything does not last forever and these assets are no exception. In the process of work, they require repair and reconstruction. How can you write off the costs of these operations in accounting?
Instructions
Step 1
First, it should be noted that the cost of repairs includes the cost of all parts, materials, as well as the amount of payment to workers involved in the repair work of this facility. It should also be clarified that costs can be written off in different ways: at a time, evenly by creating a reserve, or by accounting for deferred expenses. In one way or another, be sure to reflect it in the accounting policy.
Step 2
Simultaneous write-off of costs is very convenient in small companies, if the repair costs are low, then it is advisable to use this method. But if the costs are constant and large, then this will significantly increase the cost of production.
Step 3
Such costs are accounted for as part of expenses for ordinary activities on accounts 20 “Main production”, 25 “General production costs” and 26 “General business expenses”.
Step 4
As a rule, spare parts and materials are purchased for repairs. Reflect them on account 10, and after they are transferred for repair from the credit of account 10, write off to the debit of the account for accounting for production costs. At the same time, it is necessary to take into account the costs precisely in the period in which they were incurred.
Step 5
Based on all of the above, we can conclude that repair costs are included in the costs associated with the production and sale of products.
Step 6
What postings must an accountant make with this method of accounting for the costs associated with the repair of fixed assets? D10 "Materials" K60 "Settlements with suppliers and contractors" - reflects the cost of purchased materials for the repair of fixed assets;
Д60 "Settlements with suppliers and contractors" К50 "Cashier", 51 "Settlement account" - the amount owed to the supplier has been written off;
D23 "Auxiliary production" K10 "Materials" - reflects the cost of spare parts transferred for the repair of the OS;
D23 "Auxiliary production" K70 "Payments with personnel on remuneration" - accrued remuneration for employees engaged in the repair of fixed assets;
D23 "Auxiliary production" K69 "Settlements for social insurance and security" - unified social tax accrued;
D20 "Main production", 25 "General production costs", 26 "General operating expenses", 44 "Sales costs" K23 "Auxiliary production".
Step 7
To document the repair of fixed assets, you will need an act of acceptance and transfer of repaired, reconstructed, modernized fixed assets (form No. OS-3), which consists of two sections. In the first, indicate information about the main tool before the repair, that is, indicate the problem, the reason for its occurrence, and in the second, list all the costs associated with the repair of the object.
Step 8
Assessment of fixed assets should be carried out by a commission, the composition of which is appointed by order of the head. It is the members of this society who sign the act. After the repair, enter the information into the inventory card of this object (form No. OS-6).
