How do enterprises write accounting entries when selling fixed assets?

When an enterprise sells fixed assets in order to get more income, it should be transferred to the fixed assets clearing account for relevant accounting. How to compile relevant accounting entries?

Accounting entries for the sale of fixed assets

Transfer fixed assets (book value) to fixed assets liquidation.

Debit: liquidation of fixed assets

accumulated depreciation

Impairment of fixed assets

Loans: fixed assets

Cleaning expenses incurred, etc.

Debit: liquidation of fixed assets

Taxes payable-VAT payable (input tax)

Loans: bank deposits

Recover the price and tax on the sale of fixed assets.

Debit: bank deposit

Loan: liquidation of fixed assets

Taxes payable-VAT payable (output tax)

Waste storage

Borrow: raw materials

Loan: liquidation of fixed assets

Treatment of insurance or negligence compensation

Debit: Other receivables.

Loan: liquidation of fixed assets

Gains or losses from the disposal of fixed assets such as sale and transfer.

dead loss

Debit: gains and losses from asset disposal

Loan: liquidation of fixed assets

net profit

Debit: liquidation of fixed assets

Loans: gains and losses from asset disposal

Asset disposal gains and losses are used to account for the disposal gains and losses arising from the sale and transfer of fixed assets and intangible assets. The profit and loss of asset disposal affects the operating profit. Gains and losses from asset disposal are directly included in current profits and losses.

"Assets disposal gains and losses" reflect the disposal gains or losses recognized when an enterprise sells illiquid assets (excluding financial instruments, long-term equity investment and investment real estate) or classifies them as disposal groups available for sale (excluding subsidiaries and enterprises), as well as the disposal gains or losses arising from the disposal of fixed assets, construction in progress, productive biological assets and intangible assets not classified as available for sale. The gains or losses arising from the disposal of non-current assets in debt restructuring and the gains or losses arising from the exchange of non-monetary assets with non-current assets are also included in this account.

Accounting entries of fixed assets inventory surplus

Borrow: fixed assets

Credit: adjustment of profit and loss in previous years

Adjust income tax

Debit: previous year's profit and loss adjustment

Loan: Taxes payable-Income tax payable

Carry forward previous year's profit and loss adjustment

Debit: previous year's profit and loss adjustment

Loan: surplus reserve-statutory surplus reserve (10%)

Profit distribution-undistributed profit