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Encyclopedia of accounting - Grachev RE Section II Part 1

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Modernization and repair of machinery and equipment. Contracting

Table 2.17

№ p / p

Contents of operation

Turnover of accounts

sum

The main business operations

calculation of tax operations

Dt

KT

Dt

KT

1.

Work on the modernization of the object taken under the act, and their value credited in the capital expenditure

152

631

14000

2.

Levied a tax credit on VAT (prov. Together with wire. 1)

641

631

2800

3.

Repairs made under the act, and their value credited in the reporting period, expenditures

977

631

5700

4.

Levied a tax credit on VAT (prov. Together with wire. 3)

641

631

1140

№ p / p

Contents of operation

Turnover of accounts

sum

The main business operations

calculation of tax operations

Dt

KT

Dt

KT

5.

It paid to contractors for work performed

631

311

23640

6.

Capital expenditure (expenditure incurred in connection with modernization) credited to an increase in the initial value of the object

104

152

14000

7.

Expenses incurred in connection with the repair, credited to the reduction in the financial results of the reporting period

793

977

5700

Examples shown in Tables 2.16 and 2.17, generally cover all situations in which can be carried out to improve and repair of fixed assets. If we improve not only machines and equipment (.. That is carried out not only upgrade), but the room, the building in which they are located - that this improvement will be called reconstruction. Since reconstruction - is a whole range of activities (including restructuring and modernization), and the accounting entries to reflect the entire complex. In general posting on the reflection of the reconstruction of production did not differ from those just mentioned - perhaps only by their number and even a variety of sub-accounts, for reconstruction to be a certain set of different objects, rather than individual units. However, to reflect the reconstruction is needed per object. Therefore, as provided in a scheme of accounting entries some universal for all businesses the situation on the reconstruction of the production is almost impossible, and even if we had it succeeded, then this table is still there would not be a single one of these "improvements" that would not have been given in the past - we offer readers a look into the matter on their own. The main thing to remember - in the accounting value of works on reconstruction and modernization refers to the composition of capital expenditures, and therefore also in the future to increase the initial cost of these facilities, and the cost of repair work (it does not matter, major is the repair or current) is credited in the reporting period expenses. With regard to taxation, it is very different from accounting. It and reconstruction, and modernization, and repair - all these improvements. And the cost of the work on this "improvement" is almost entirely credited to the increase in value of the relevant group of fixed assets. With the exception of ten percent, which the company has the right to enroll in the gross expenditure and which were mentioned at the beginning of this section (see. Quote of the Law on income tax).


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