A fixed asset is the property of an enterprise, which serves as a means for manufacturing products or performing any work (services). In accounting, depreciation is charged, that is, the initial amount of these assets is written off. Thus, the depreciation amount is written off.
Instructions
Step 1
Depreciation can be charged in a variety of ways. One of them is linear. This method involves writing off the same amount over the life of the asset. For example, you have purchased a computer with a useful life of 24 months. The initial cost is 20,000 rubles. Thus, the amount of depreciation deductions is equal to 20,000 / 24 = 833, 33 rubles per month.
Step 2
There is also a decreasing balance method. According to the order of the head, the amount of depreciation in the first year will be significantly higher than in subsequent years, that is, depreciation deductions will gradually decrease. For example, the manager indicated a depreciation rate of 30%. Thus, in the first year 20,000 * 30/100 = 6,000 is the amount of depreciation, in the second year - 6,000 * 30/100 = 1,800. The depreciation amount for the entire period of use will be 7,800. It should be noted that this method does not provide for a residual value of zero.
Step 3
Another method of amortization is to write off value based on the number of years of useful life. This method is considered an accelerated method. In this case, the initial cost is written off according to the shares of the remaining useful years. For example, a fixed asset has been acquired with a useful life of 3 years. The purchase amount was 15,000 rubles. Thus, the number of annual numbers is 3 + 2 + 1 = 6. Depreciation in the first year is 15,000 * 3/6 = 7,500 rubles, in the second year - 15,000 * 2/6 = 5,000 rubles, in the third year - 15,000 * 1/6 = 2,500 rubles. The depreciation amount for the entire period will be 15,000 rubles.
Step 4
There is also such a method of depreciation, which is used only for those objects that are involved in the production of products. It is called the method of writing off the amount in proportion to the volume of manufactured products. For example, a machine was bought for 80,000 rubles. According to the technical conditions, 40,000 units of products can be produced on it. Thus, depreciation for one product produced is 2 rubles. In the first year, 15,000 units of production were produced on this fixed asset, depreciation in this case will be equal to 15,000 * 2 = 30,000 rubles. In the second year, 13,000 units, the amount of depreciation is 26,000 rubles.
Step 5
Depreciation deductions are accounted for on accounts 02 "Depreciation of fixed assets" in correspondence with accounts 20 "Main production" (when calculating the amount of depreciation at the beginning of the period), 44 "Selling expenses" (when calculating depreciation of fixed assets), 91 "Other expenses and income ".
Step 6
During operation, the assets of the organization wear out and installation is required. Repairs are made at the expense of production costs. It is necessary to draw up the following entries: D20 "Main production", 23 "Auxiliary production", 25 "General production costs" and others and K60 "Settlements with suppliers and contractors" (the amount of repairs is charged), D19 "Value added tax on acquired values" K60 (VAT amount).