There are two situations in which fixed assets are scrapped: one is due to wear and tear or obsolescence and cannot continue to be used at the end of its service life; the other is that due to technological progress, it must be replaced by advanced equipment. The scrapping of fixed assets will, on the one hand, reduce the company's fixed assets due to the withdrawal of the fixed assets from the company. On the other hand, some cleanup expenses will be incurred during the cleanup process, and a certain amount of variable price income may also be obtained. Therefore, the accounting for the scrapping of fixed assets should be carried out according to the following procedures:

(1) Write off the original value and depreciation amount of the scrapped fixed assets. According to the net value of fixed assets, the "fixed assets liquidation" account is debited; according to the depreciation amount already provided, the "accumulated depreciation" account is debited; according to the original value of the fixed assets, the "fixed assets" account is credited.

(2) Carry forward the residual material value and price change income. According to the value of the recovered residual materials and the price change income, the "bank deposits", "raw materials" and other accounts are debited, and the "fixed assets liquidation" account is credited.

(3) Pay the cleaning costs. According to the cleanup expenses incurred, the "Fixed Asset Cleanup" account will be debited and the "Bank Deposits" and other accounts will be credited.

(4) Carry forward the net profit and loss after liquidation. The net income after the liquidation of fixed assets is debited to the "Fixed Assets Liquidation" account and credited to the "Non-operating income - income from disposal of fixed assets" account; the net loss after the liquidation of fixed assets is debited to the "Non-operating expenses - disposal of fixed assets" account. The "Asset Loss" account is credited to the "Fixed Asset Liquidation" account.