What Is Acquisition Accounting?

The acquisition of fixed assets refers to the entire process from the beginning of the purchase or construction of the fixed assets to the delivery and use of the fixed assets.

Acquisition of fixed assets

(I) Non-repetitive purchase activities ^[1]

1. Main accounts that need to be set up for the accounting of fixed asset purchase business ^[2]

(1) "Construction in progress" account The "construction in progress" account is an asset account and is used to account for the actual expenditures incurred by the enterprise in carrying out construction, installation, and technical renovation projects. The borrower registered all the expenses incurred during the construction and installation process, and the lender registered the actual cost of the completed project. The balance at the end of the period was on the borrower, indicating the actual expenditures incurred for the construction in progress that has not yet been completed. The account shall be set up with a detailed account according to construction engineering, installation engineering, etc. for detailed classification and accounting.

(2) "Taxes payable" account "Taxes payable" account is a liability account, and its accounting content and account structure have been introduced earlier. Since January 1, 2009, the general VAT taxpayer, the VAT paid to the supplier during the purchase of fixed assets, can be used as the debit to the input tax payer's "tax payable-VAT payable" account To deduct the amount of output tax. 2. Accounting for Fixed Asset Purchase Business

[Example 1] Northern company is a general VAT taxpayer. It purchases one piece of equipment that does not need to be installed. The purchase price is 200,000 yuan, the value added tax is 34,000 yuan, and the miscellaneous expenses are 15,000 yuan. The entire amount is paid by check. The equipment has been shipped to the enterprise. Put into use. The occurrence of this economic business, on the one hand, increased the fixed assets of the company by 215,000, which should be debited to the "fixed asset" account, and at the same time, the input VAT payable increased by 34,000 yuan, and the "payable tax" Debit to VAT account; On the other hand, the payment was made by check, which reduced the bank deposit by 249,000 yuan, which should be credited to the "bank deposit" account. The accounting entries should be prepared as follows.

Borrow: Fixed assets 215000

Taxes payable-VAT payable (input tax) 34000

Loan: bank deposit 249000

[Example 2] According to Example 1, it is assumed that the above-mentioned equipment purchased needs to be installed. During the installation process, 10,000 yuan of raw materials will be received, the wages of the installers of the enterprise shall be 22,000, and other related installation costs of 3,000 yuan shall be paid in cash. After installation, the equipment passed the acceptance check and was delivered for use. To purchase fixed assets that need to be installed, first collect and record the purchase and installation costs through the construction in progress account, install and deliver them after use, and then transfer the cost of the fixed assets from the construction in progress account to the fixed Assets "account.

(1) The occurrence of this economic business at the time of purchase, on the one hand, increased the cost of fixed assets that the enterprise needed to install by 215,000 yuan, which should be credited to the debit of the construction in progress account, while increasing the input VAT payable 34,000 yuan should be credited to the debit of the "Payable Taxes-VAT payable" account; on the other hand, the payment was cleared by check, which reduced the bank deposit by 249,000 yuan and should be credited to the "bank deposit" account. The accounting entries are prepared as follows.

Borrow: Construction in progress 215000

Taxes payable-VAT payable (input tax) 34000

Loan: bank deposit 249000

(2) The occurrence of the economic business when the installation costs occurred, on the one hand, the installation cost of the equipment increased by 35,000 yuan, which should be debited to the "construction in progress" account; on the other hand, the raw materials were reduced by 10,000 yuan, The lender that should be credited to the "raw materials" account, while increasing the payable employees' wages by 22,000 yuan, the creditor who should be credited to the "payable employees payable" account, also reduced the cash by 3,000 yuan, and the creditor who should be credited to the "cash on hand" . The accounting entries are prepared as follows.

Borrow: 35,000 construction in progress

Loan: Raw materials 10000

Payable to employees 22000

Cash in stock 3000

(3) After the installation of the equipment is completed and the economic business is delivered, the cost of the equipment collected in the Construction in progress account shall be transferred from its lender to the debit of the fixed asset account to reflect the fixed asset Increase. The accounting entries are prepared as follows.

Borrow: 250,000 fixed assets

Loan: construction in progress 250,000