Fixed assets wear out over time. That is why some organizations are writing off these funds. Disposal can be due to both physical deterioration and moral. The procedure for writing off fixed assets is regulated by the Methodological Guidelines for Accounting for Fixed Assets.
Instructions
Step 1
First, issue an order on the appointment of a commission for assessing the property, include officials, including the chief accountant, those responsible for these objects and other senior positions. These persons should assess the possibility of further use of the property.
Step 2
Before they begin to inspect the object, it is necessary to prepare all the documentation for it, for example, a technical passport, an inventory card and other documents.
Step 3
Further, the commission conducts an inspection, establishing the reasons that led to the disposal, for example, the operating condition of the facility, natural disasters. Also, the commission's responsibilities include identifying the perpetrators and proposing the amount of moral damage.
Step 4
If it is possible to use individual pieces of equipment, then the above composition also establishes their availability, estimates the cost according to market indicators.
Step 5
All results of disposal of the fixed asset shall be issued in the form of an act of writing off the fixed assets (form No. OS-4 or OS-4a or OS-4b). This document must be signed by all members of the commission. If necessary, draw up an annex to the act, for example, indicating the reasons that caused this or that industrial accident.
Step 6
After that, this act must be approved by the head of the organization. This is done using a free-form order.
Step 7
Transfer all documents to the accounting department. Employees of this department must make changes to inventory cards, that is, make a note of the disposal of fixed assets, and also reflect this in accounting. This is done as follows:
D01 "Fixed assets" K01 "Fixed assets" subaccount "Retirement of fixed assets" - the initial cost of the retired fixed assets has been written off;
D02 "Depreciation of fixed assets" К01 "Fixed assets" subaccount "Disposal of fixed assets" - the amount of depreciation charges has been written off;
D91 "Other income and expenses" K01 "Fixed assets" subaccount "Disposal of fixed assets" - the residual value of fixed assets was written off to non-operating expenses;
D91 "Other income and expenses" K23 "Auxiliary production", 69 "Settlements for social insurance and security", 70 "Settlements with personnel for wages" - written off the costs resulting from the write-off of fixed assets;
D10 "Materials" K91 "Other income and expenses" - reflects the cost of materials accepted for accounting, remaining after disposal of fixed assets.
