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    Asset Entries

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    suresh
    The document discusses various fixed asset accounting entries for: 1) Recording the purchase of an asset and transferring it to an asset account 2) Adding costs to fixed assets under construction (CIP) and later capitalizing CIP to a fixed asset account 3) Recording depreciation expense and accumulating depreciation in an account 4) Retiring or removing a fixed asset and any associated costs or proceeds from disposal The entries debit and credit the appropriate fixed asset, accumulated depreciation, expense, and disposal accounts to properly record the transactions at each stage of an asset's life in the accounting system.

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    Asset Entries

    Uploaded by

    suresh
    17 views4 pages
    The document discusses various fixed asset accounting entries for: 1) Recording the purchase of an asset and transferring it to an asset account 2) Adding costs to fixed assets under construction (CIP) and later capitalizing CIP to a fixed asset account 3) Recording depreciation expense and accumulating depreciation in an account 4) Retiring or removing a fixed asset and any associated costs or proceeds from disposal The entries debit and credit the appropriate fixed asset, accumulated depreciation, expense, and disposal accounts to properly record the transactions at each stage of an asset's life in the accounting system.

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    Fixed assets entiries

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    The document discusses various fixed asset accounting entries for: 1) Recording the purchase of an asset and transferring it to an asset account 2) Adding costs to fixed assets under construction (CIP) and later capitalizing CIP to a fixed asset account 3) Recording depreciation expense and accumulating depreciation in an account 4) Retiring or removing a fixed asset and any associated costs or proceeds from disposal The entries debit and credit the appropriate fixed asset, accumulated depreciation, expense, and disposal accounts to properly record the transactions at each stage of an asset's life in the accounting system.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views4 pages

    Asset Entries

    Uploaded by

    suresh
    The document discusses various fixed asset accounting entries for: 1) Recording the purchase of an asset and transferring it to an asset account 2) Adding costs to fixed assets under construction (CIP) and later capitalizing CIP to a fixed asset account 3) Recording depreciation expense and accumulating depreciation in an account 4) Retiring or removing a fixed asset and any associated costs or proceeds from disposal The entries debit and credit the appropriate fixed asset, accumulated depreciation, expense, and disposal accounts to properly record the transactions at each stage of an asset's life in the accounting system.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    1.

    Assets Entries

    Asset Purchased entry


    Asset Clearing a/c Dr
    To AP accrual a/c Cr

    Asset Adding Entry


    Asset Cost a/c Dr
    To Asset Clearing a/c Cr

    Asset Changes Entry


    Asset Cost a/c Dr
    To asset clearing a/c

    Asset transferred Entry


    Asset Cost a/c Dr
    Accumulated Depreciation a/c Dr
    Asset a/c Dr
    To Accumulated Depreciation a/c Cr

    Asset Revalue Entry


    Asset Cost a/c Dr
    To accumulated Depreciation a/c Cr
    To revaluation Reserve a/c Cr

    Asset Retirement Entry


    Accumulated Depreciation a/c Dr
    Proceeds of Sale a/c Dr
    To asset gain a/c Cr
    To gain A/c Cr

    Asset Removed Entry


    Accumulated Depreciation a/c Dr
    Proceeds of Sale a/c Dr
    To asset gain a/c Cr
    To gain a/c Cr
    To Cost of Removal a/c Cr
    2ND PERSON

    1)When u enter assets in FA

    Asset cost a/c Dr


    to asset clearing a/c.

    2) when we calculate depreciation

    Depreciation expense a/c Dr


    to Accumulated depreciation

    3) for CIP assets we don't know depreciation

    CIP cost
    to CIP clearing a/c

    4)when you capitalize cip assets

    asset cost a/c Dr


    to cip cost

    For depreciation

    Depreciation expense a/c Dr


    to accumulated depreciation

    5)Change capitalized to CIP

    CIP cost a/c Dr


    to asset clearing a/c
    3 PERSON

    When we record Asset Invoice in Payable

    Asset Clearing A/c……......Dr $ 10000


    Liability A/c (Payable)….…Cr $ 10000

    When we create Fixed Asset in FA

    Asset cost A/c…………..Dr $ 25000


    Asset clearing A/c…….…Cr $ 25000

    When we add CIP (Construction –In- Process) Asset

    CIP Cost A/c…....Dr $ 50000


    CIP Clearing A/c…Cr $ 50000

    When you Capitalize the CIP Asset

    Asset Cost A/c……Dr $ 10000


    CIP clearing A/c….Cr $ 10000

    When Depreciation is calculated

    Depreciation Expense A/c......…Dr $ 1000


    Accumulated Depreciation A/c…Cr $ 1000

    When we retire the asset with removable cost

    Accounts Receivable A/c…….......Dr $ 5000


    Proceeds of Sale Clearing A/c…...Cr $ 5000
    Cost of Removal Clearing A/c…....Dr $ 1000
    Accounts Payable A/c………....…...Cr $ 1000
    When we retire the asset

    Accumulated Depreciation A/c…...Dr $ 2500


    Proceeds of Sale clearing A/c…....Dr $ 2000
    Revaluation Reserve A/c……….......Dr $ 600
    Asset Cost A/c………………….......…Cr $ 4000
    Cost of removal clearing A/c…...…Cr $ 500
    Gain/Loss A/c…………………….........Cr $ 600

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