Normal scrapping is the result of the production and operation of the enterprise, and it is not necessary to go to the tax bureau for filing.

Abnormal scrapping, or the disposal price is less than the book value (principle-after accumulated depreciation), (you finally carry it over to other business expenses, which reduces the profit of the enterprise), this should be filed with the tax bureau.

Net loss from disposal of fixed assets: refers to the amount that the income from disposal of fixed assets of an enterprise is not enough to pay the disposal expenses and the book value of fixed assets, and should be included in non-operating expenses.

Enterprises sell, transfer, scrap or damage fixed assets, and the amount of disposal income after deducting the book value and related taxes and fees is included in the current profits and losses. The disposal of fixed assets is generally accounted for by the subject of "Fixed Assets Clearing".

Disposal of fixed assets includes converting the held fixed assets into sale, sale, transfer, scrapping, etc.

1. An enterprise holding fixed assets for sale shall adjust its estimated net salvage value.

2. When an enterprise sells, transfers, scrapes or damages fixed assets, it shall include the amount of the disposal income after deducting the book value and relevant taxes and fees into the current non-operating expenses.

Accounting Treatment of Fixed Assets Scrapping

1. When the fixed assets are scrapped, first enter the fixed assets cleaning account.

Debit: liquidation of fixed assets

Debit: accumulated depreciation

Loan: Fixed assets (original value)

2. Expenses and taxes payable in the cleaning process.

Debit: liquidation of fixed assets

Loan: taxes payable and business tax payable.

Loan: bank deposit or cash.

3. Clean up and recover income

Debit: bank deposit

Loan: liquidation of fixed assets

4. Net loss of fixed assets after liquidation

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

Loan: liquidation of fixed assets

5. Net income after liquidation of fixed assets

Debit: liquidation of fixed assets

Loan: non-operating income-net income from disposal of fixed assets

Is it necessary to put on record the scrapping of fixed assets? According to the relevant regulations, if the fixed assets of an enterprise are scrapped normally in production, they do not need to be declared to the tax authorities; if they are scrapped abnormally, they need to be declared to the tax authorities. As for the accounting methods, we have sorted them out in the above small series. Let's learn by ourselves. Thank you. Goodbye.