Property, plant and equipment are those assets of an organization whose useful lives exceed one year. These include: buildings, structures, any equipment and other values. Depreciation (depreciation) is charged on them on a monthly basis, as their initial cost is gradually written off. How to reflect transactions related to fixed assets?
It is necessary
- - the act of acceptance and delivery of fixed assets;
- - accounting information;
- - invoice from the supplier;
- - contract;
- - payment documents.
Instructions
Step 1
Typically, fixed assets are received by the organization first. At the same time, they can come from various sources, and the credited account depends on this. For example:
D08 "Investments in non-current assets" K75 "Settlements with founders" - reflected the receipt of fixed assets in the account of the authorized contribution;
D01 "Fixed assets" К08 "Investments in non-current assets" - fixed assets were put into operation.
Step 2
In the event that fixed assets were purchased from a supplier, make a note:
D08 "Investments in non-current assets" К60 "Settlements with suppliers and contractors" - accrued to the supplier for fixed assets.
Step 3
When purchasing equipment that requires installation, that is, installation, it is also necessary to reflect this with the appropriate wiring:
D07 "Equipment for installation" K60 "Settlements with suppliers and contractors" - the amount charged to the supplier for the OS;
D08 "Investments in non-current assets" K07 "Equipment for installation" - the equipment was transferred for installation;
D08 "Investments in non-current assets" K70 "Payments with personnel for wages" or 69 "Payments for social insurance and security" - costs of installation are taken into account;
D01 "Fixed assets" К08 "Investments in non-current assets" - fixed assets were put into operation.
Step 4
Sometimes it is advisable to use the revaluation of fixed assets, this is done, for example, in order to prepare financial statements and conduct an analysis. Revaluation is done once a year. Remember that having done it once, you must do this procedure every year. With this operation, make an entry in the accounting in case of revaluation:
D01 "Fixed assets" К83 "Additional capital" or 84 "Retained earnings" - the initial cost of fixed assets has been increased;
D83 or 84 K02 "Depreciation of fixed assets" - increased depreciation charges for fixed assets.
And in case of markdown:
Д83 or 84 К01 - the initial cost of fixed assets has been reduced;
D02 K83 or 84 - depreciation charges for fixed assets have been reduced.
Step 5
As mentioned above, over time, the fixed assets on the balance sheet of the enterprise age. Based on this, it is necessary to amortize on a monthly basis, that is, to write off the depreciation amount from the initial cost. To account for depreciation, account 02 is used, to which the accounts are debited: 20 "Main production" 23 "Auxiliary production", 25 "General production costs" and other accounts.
Step 6
Sometimes these assets fail, in this case it is advisable to transfer them for repair. It should be borne in mind that such expenses are written off at a time. This is done by wiring:
D20, 23, 25, etc. К 10 "Materials", 60 "Payments with personnel for labor remuneration" etc. - expenses for the repair of the OS have been written off.
Step 7
Sometimes organizations create a repair fund, where they write off costs evenly and every month. That being said, you should also reflect this in your accounting records:
D20, 25, 26, etc. K96 "Reserves for future expenses" - reflected deductions to the repair fund.
Step 8
When there is a posting in accounting. If the OS is decommissioned due to unusability, make the following entries:
D01 K01 - the initial cost of fixed assets was written off;
D02 K01 - the depreciation amount of fixed assets was written off;
Д91 К01 - the residual value of fixed assets was written off.
