Fixed asset transaction. Basic accounting entries on fixed assets

Non-Current assets of the company play an important role in the production cycle, is associated logistics processes, manufacturing, rendering services and carrying out many types of work. This asset allows organizations to earn income, but it is necessary to closely examine the composition, structure, the cost of each item. Constant monitoring is carried out on the basis of accounting data, which must be true and correct. The main fixed asset transactions are typical, but in the process may arise an emergency situation.

Fixed assets

The assets of the organization have different rotation, i.e. the process of transferring its value to the price of output. Non-current fixed assets belong to the category of illiquid, they are characterized by the following indicators:

1. High initial price.
2. Participation in several production cycles while maintaining the initial physical form.
3. Phased transfer prices in production costs with amortization payments.

   

Journal entry for fixed assets must be written correctly, taking into account asset type, useful life, purpose of use. Apply for account active account 08, 01 and 02 for passive amortization of accruals. The main tools are divided in the following groups: buildings, machinery, computers, equipment, livestock, means of transport, planting (long-term), buildings, tools. Compiled by accountant fixed asset transaction must contain the total value. The asset has multiple values: initial, residual and regenerative. All business transactions (transactions) of the asset accompanied by the relevant entry in the registers, i.e. are the appropriate correspondence. The main non-current funds are reflected in the active part of the balance, section No. 1.

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Amortization

Everyone, including those on conservation, the object of fixed assets is limit the operation of which depends on the purpose, usage conditions and the group's assets. In the operation of each unit subject to wear, which can be moral (obsolescence) or physical (full development of the resource, dismantling, and destruction). Depreciation of fixed assets (posting 02 account) begins to accrue from the moment of its registration statement on a monthly basis, equal to (the linear graph) shares for the entire period of operation. Is calculated as a percentage of the initial (price + costs to completion no data revaluation) value of the object, based on the period of operation. Depreciation is recorded on the passive, No. 02, and relates to cost units, which unit is used. Accumulated depreciation of fixed assets transactions are reflected in the following records registers: D^T 20, 44, 25, 26, 29, 23, 97, 91; To^T02 depreciation of fixed assets calculated according to the objects used in main, auxiliary, additional production, leased. Accumulated for the period depreciation amount is subtracted from the original cost and the residual gives the price at which the object can be sold, scrapped, dismantled. This wiring of fixed assets to be disposed of: D^T 02;^TNo. 01/sub.

Admission

General industrial and non-Current assets are acquired through large investments, which can be private, leveraged, investment. Source can be:

1. The Purchase from suppliers.
2. Installment of founders.
3. Free (gift) transfer.
4. Construction (construction).
5. The acquisition of the swap agreement.

   

Each operation is accompanied by regulated documents standardized forms and make the appropriate accounting entry (posting). For fixed assets that require more elaboration, installation and preparation for exploitation on the basis of calculations and references formed the initial cost, which includes all relevant costs. Transfer of fixed asset transactions and the corresponding documents issued in accordance with the contract, upon receipt of the money to the account of supplier or by the fact of installation of the object.

Purchase

In the process of acquisition of non-current assets the cost reflected in account 08 to the date of commissioning. In parallel in the registers reflected debts to suppliers and tax liabilities arising from the transaction. With the purchase of an asset without additional modification and the one-time transfer of the property accounting prepares the following correspondence:

• D^T No. 08/s;^T 76 or 60; the amount of debt owed to companies and organizations involved in the shipping, packaging;
• D^T 19/sub-account;^T, 60, 76; the value of invoiced VAT;
• D^T No. 01/sub;^T No. 08/sub-account; the amount of the initial value at which the object is put on the account and is recognised in the balance sheet;
• D^T 76, 60; To^T 51, 71, 55, 52, 50; paid arrears in cash,non-cash funds from the special account or via accountable (empowered) person.

  

The Main fixed asset transactions are carried out in parallel with the filling of documents for posting (inventory card acceptance).

Refinement of

Many objects of fixed assets (various purposes) have not only high cost but also the size, which makes them difficult to transport and the process of preparation for work. In this case all additional costs for improvement included in the amount of original cost of the asset units. The process of their accumulation occurs in the account 08 in correspondence with accounts of calculations. Installation, Assembly and preparation cycle can be carried out by organizations of buyer and subsidiary departments, in this case, the corresponding costs will affect the production accounts. This process will also increase the debt on payment of labour of employees involved in it, and transfer to the appropriate funds (SOC. insurance, pension). The asset acquisition transactions:

• D^T No. 08/s;^T 76, 60 purchase;
• D^T 19;^T of the MF. No. 60 or 76 to the value invoiced VAT;
• D^T No. 08/s;^T 23, 29, 25, 20 costs for the installation and completion of the purchased object;
• D^T No. 08/s;^T 70 (69, 68), 10/sub-account, accrued staff salary, taxes, expended materials in the preparation of the OPF;
• D^T No. 08/s;^T 68; on works performed in the contract (own funds) VAT.

Either:

• D^T No. 08/s;^T of the MF. No. 76, 60 Assembly costs provided by third-party organizations increase the price of the object.
• D^T No. 01/sub;^T No. 08/subaccount capitalized object of non-current assets at cost. Payment to suppliers is done through Bank transfer or cash, in finalizing its own expenses included in the cost of manufactured products in proportion to a particular index.

Donation, the contribution to UK

When entering a specific unit of BPA from the founders of the company, or donation is necessary to assess the object. To determine the cost it is better to engage an independent expert, as in excess 5 times the minimum wage a gratuitous transfer may be invalidated. In both cases, the asset may require revision or editing, then typical activities are recorded in the following order:

1. Donation (receipt) fixed asset transaction:

• D^T No. 08/s;^T 98/2 estimated cost of the project OFFICE;
• D^T No. 01/sub;^T No. 08/ s; capitalized asset. The cost placed on record of the asset includes all costs to prepare for operation.

2. From the founders of non-current funds received as contribution to the authorized (share) capital of the company. Their price at the initial stage is defined as the cost of the work to convey the object. The asset acquisition transactions:

• D^T No. 08/s;^T 75 taken from the founders;
• D^T No. 08/s;^T of the MF. No. 76, 60 installation, Assembly, completion of third-party organizations;
• D^T 19;^T 60 or 76; VAT;
• D^T No. 01/sub;^T No. 08/sub: posting of fixed asset object. The process of bringing the asset to working condition can be done in-house auxiliary services of the organization.

Retirement

The Composition and structure of objects of the basic production assets should match the production needs of the enterprise. When analyzing the return on assets ratio identifies the objects that long-term idle or in a state of preservation. Such piece of equipment, the organization can sell, decommission, dismantle or swap agreement to transfer the asset. The transactions in these cases should reflect the financial result from the asset transfer. A mandatory condition of all processes is the determination of the residual value of the unit OF. Its calculation uses the accumulated amount for the period operating depreciation, which is reflected on the K^T account No. 02. The main fixed asset transactions are prepared for retirement, they mean write-off wear and closure account-specific unit of equipment, transport, etc.

Implementation

The sale Process of the main non-current asset is accompanied by filling in the appropriate accounting registers. First of all, is a contract, which reflects the price (agreed price) of sold units of OPF. Next, the accounting Department prepares inventory card on which the asset.

Transactions should reflect the fact of disposal, the act of transfer (standardized form) of the object based on the contractual value. Realization (disposal) of fixed assets transactions:

• D^T 76, 62, 79; K^T 91/1 invoiced to the buyer of the asset;
• D^T No. 01/subsetted disposal; To^T No. 01/substatuses the initial cost of the property charged;
• D^T 02/analytical account; To^T No. 01/subsetted Disposals; depreciation of fixed assets, the transaction is drawn up for each accounting unit separately.
• D^T 91/2;To^T No. 01/subsetted disposal; decommissioned (defined) the residual value of the units of the asset;
• D^T 83;^T 84; revaluation surplus (revaluation) is debited OS;
• D^T 91/2;^T 23, 25, 29, 70, 69, 10; the cost of preparing the facility for implementation;
• D^T 91/2;^T 68/sub-accounts; VAT;
• D^T, 51, 55, 50, 52 (at calculations in foreign currency);^T, 62, 76; the funds received from the buyer of the OS object.

In the case of a gratuitous transfer of an asset to a subsidiary or by mutual consent of the companies transactions are made in a similar way. The exception to this is the fact that the billing and crediting of funds from the buyer, because in this case there is no party of the contract. The procedure for determining value at the end of the period of operation and cancellation of depreciation is standard for all transactions of disposal of non-current assets. Inventory card of the object is closed, the account is liquidated, the corresponding analytic account.

Cancellation

A non-Current asset in the process of work wear out, i.e. loses some of its specifications or become obsolete. In this case, unit of equipment or vehicles difficult to implement, so the company likely to write off his balance or sent for dismantling. During disassembly of the object parts, spare parts should be evaluated and capitalized as current assets (account 10/sub). Accounting is the act under which the issued asset. Transactions are reflected in the sequence:

• D^T No. 01/subsetted disposal; To^T No. 01/sub-account; balance (initial) cost of written-off;
• D^T 02/analytical account; To^T No. 01/subsetted Disposals; accumulated depreciation charged;
• D^T 91/2;^T No. 01/subsetted disposal; residual value;
• D^T 83;^T 84; reappraisal;
• D^T 91/2;^T 26, 29, 70, 69, 10; the costs of dismantling;
• D^T 12, 10/sub-account;^T 91/1; come spare parts, supplies, consumables and spare parts obtained in the dismantling process units OPF.

The Cancellation of units of production assets is performed in case of loss. This can happen through the fault of the responsible person, as a result of natural disasters. If the perpetrator is known, compensation is estimated by competent persons damage is done at his expense in a lump sum or in stages, within a specified time period. At full or partial destruction of the object OS in the result of irresistible (force majeure) circumstances the company owner can claim for insurance payment, if there is an agreement on compensation. Accounting using standard operations prepares the disposal of fixed assets. Transactions that are made in the future will depend on the source of the compensation. For insurance claims:

• D^T 76/sub-account;^T No. 01/sub-account; reflects the value of the insured property;
• D^T 55, 51, 52, 50;^T 76/subaccount; entered insurance payments;
• D^T 99; It^T 76/1; uncompensated costs written off. For allocation of loss on the offender compiled accounting record on the relevant registers:
• D^T 94; A^T No. 01/sub-account; reflected loss, damage OF object;
• D^T 73/sub-account;^T 94; costs charged to the guilty person;
• D^T, 50, 70, 51; To^T 73/sub-account; reimbursement of expenses payment of cash, to the account or the repayment of the debt due to wages.

Automation

Transactions in the account for the movement of non-current assets are typical. In terms of automation of all types of accounting due to the installation and configuration of appropriate software, the task of an accountant is greatly simplified. Reduced paperwork and increased efficiency of analysis. Data entry is made by filling in the programme of the relevant document which gives the ability to automatically fill all interdependent accounting registers on a specific object. Time of registration of acts, inventory cards of analytical transcripts is significantly reduced. Automatiseret the process of correspondence between the accounts (accounting entries). Fixed assets, revolving funds, capital, loans accounted for in accordance with the settings of the program, on the basis of the input data and the existing laws.