If the fixed assets continue to be used after depreciation, there is no need for accounting treatment.

If it is still in use and has not been transferred, scrapped, damaged or lost, it is not necessary to clean up the fixed assets immediately. When these businesses actually happen, they are accounted for synchronously.

Second, when fixed assets are transferred, scrapped, damaged or lost, they should be cleaned up. Scrapping fixed assets needs to fill in the "Fixed Assets Scrapping Form" and clean it up after approval.

The third step is to make the following accounting entries when cleaning up the scrapped fixed assets:

1. Scrapped fixed assets transferred to liquidation:

Debit: liquidation of fixed assets (if depreciation is withdrawn, the calculation result here should be net salvage value)

accumulated depreciation

Loans: fixed assets

2. Income from the sale of scrapped fixed assets:

Debit: bank deposit

Debit: liquidation of fixed assets

3. Cleaning expenses paid

Debit: liquidation of fixed assets

Loans: bank deposits

4. If the scrapped fixed assets are carried forward as a net loss (i.e. residual income)

Debit: non-operating expenses-net loss of fixed assets

Debit: liquidation of fixed assets

5. If the carry-over of scrapped fixed assets leads to net loss (i.e. scrapped income); Differences in cleaning costs)

Debit: liquidation of fixed assets

Loan: non-operating income-net income of fixed assets.

Remarks: If the real estate is sold, the business tax shall be withheld (the tax rate is 5%). Business tax payable = actual transaction price × 5%.

The tax rate shall be subject to the actual notice of the local tax authorities.

Entry:

Debit: liquidation of fixed assets

Borrow: taxes payable-business tax payable