Account 02 02. Account 02 - "Depreciation of fixed assets"

Account 02 02 was created to collect information on the amount of accruals for depreciation of the OS. This is one of those elements of accounting, without which no company can do without regard to the direction of activity and the level of development. It is thanks to the monthly deductions to the account 02 that the organization can reduce the initial cost of the OS when it is liquidated.

The concept of depreciation

To understand the purpose of the account and use it correctly, you need to have an idea of the nature of depreciation and its significance in the organization's finances. This concept is usually characterized as depreciation of property in monetary terms.

The calculated amount is accumulated on the account during the period of the planned operation of the facility. As a result, the fixed assets can be written off, and the enterprise has some part of the capital for the purchase.

Calculation methods

The choice of a certain method of calculation of depreciation charges can not be made only on the basis of personal preferences. The accountant acts according to the job description and charges the amounts according to the requirements of the accounting policy of the enterprise.

There are 4 methods for determining depreciation charges:

• Decreasing balance;
• cumulative;
• industrial;
• linear.

The first two methods allow you to write off the largest amount in the first years of operation, while the OS objects bring a good profit. The enterprise, as it were, "hedges" itself in case of a negative financial result. The production method assumes the deduction of 02 02 amounts to the account in proportion to the volume of manufactured products. It is used only for those types of property that are involved in the production process. The method is convenient for its flexibility depending on the level of the company's income.

Linear Method

All three methods for calculating depreciation, discussed above, involve the payment of amounts by different shares. Each month or year, the amount of deductions to account 02 02 will vary depending on the initial conditions. The linear method implies accumulation of the sums of wear of the OS in equal parts throughout the life of the device.

The method is convenient for non-productive sphere and those objects, the share of which in the total profit is supposed to remain unchanged regardless of the year of use.

Accounting Depreciation

To reflect information about the sum of depreciation values of the enterprise's property, the standard chart of accounts provides for the account 02 02. The rules of accounting in its framework are the same for all organizations. From the concept of depreciation, the reader already knows that these are the amounts that serve as a source for acquiring new OS objects after the operation of the property in question has been completed. Proceeding from this, account 02 "Depreciation of fixed assets" is passive. Charging will be carried out on a loan, and write-off on a debit.

Analytical accounting can be made for certain types of property. The names of sub-accounts, as a rule, correspond to the types of account 01, since they directly interact with them.

At the end of the month, the account generates a credit balance, the value of which is reflected in the financial statements. There is no separate column for data on balances of depreciation amounts in the balance sheet. But when calculating line 120 "Fixed Assets" from the value of the debit balance of account 01, the balance on the credit of account 02 is subtracted.

Correspondence on debit

Debit 02 of the account is mainly used for writing off fixed assets from the balance of the enterprise. In addition to retirement, the objects can be transferred to a subsidiary, branch or branch, which also causes the posting with the debited account 02 to be used.

To write off the property, account assignment is used: Дт 02 Кт 01. If sub-accounts have been used, the corresponding codes are indicated. The essence of the operation is to reduce the initial cost of the object, which the organization paid at the time of its acquisition.

If, after a planned reassessment of the OS, the property has depreciated by any amount, it becomes necessary to reduce the depreciation charges proportionally to it. To record transactions use account 83: Дт 02 Кт 83. Transfer of property to the unit is also recorded in the accounting data. Simultaneously with the posting of the disposal of the OS, a record is made: Дт 02 Кт 79.

Loan postings

After the acquisition of the OS, amortization is accrued. 02 the account acquires a credit turnover. But according to the principle of double entry, simultaneously with this process there is an equal debit turnover. What accounts are involved in the relationship? The most common collective synthetic, containing information on the magnitude of overheads and distribution costs.

For the production sector, this is primarily the expense account for the cost of manufacturing products: 20, 23, 25, 26, 29. Credit account 02 in correspondence with sc. 44 can talk about the acquisition by the enterprise of property used in the implementation process. Trade organizations can also use 44 accounts to reflect depreciation charges.

If the property was purchased and used in the current period, and the cost of work will be accounted for in future periods, an account 97 is used to calculate depreciation: Dt 97 Kt 02.

Account 02: wiring typical

Having understood the principle of making entries on the account of depreciation charges, you can proceed to consideration of the main account assignments that can be made at the enterprise:

• Дт "Depreciation" Кт "ОС" - the depreciation amount for the object of the withdrawn OS has been written off.
• Дт "Depreciation" Кт "Profitable investments" - the amount of depreciation of property intended for leasing has been written off.
• Дт "Amortization" Кт "Settlements on-farm" - depreciation was carried out for the object of the OS transferred to the branch of the enterprise.
• Дт "Amortization" Кт "Additional capital" - as a result of revaluation of the operating system, the amount of depreciation is reduced.
• Дт "The main production" Кт "Amortization" - amortization was accrued for the objects used in the main production.
• Дт "Auxiliary production" Кт "Amortization" - the amortization on the got equipment in a shop of auxiliary manufacture is charged.
• Дт "General economic expenses" Кт "Amortization" - accrual of amortization on computers of administrative workers is made.
• Дт "General production expenses" Кт "Amortization" - amortization on property of general production purpose is charged.
• Дт "Expenses on sale" Кт "Amortization" - the trading enterprise has reflected the sum of depreciation of property.
• Дт "Settlements intraeconomic" Кт "Amortization" - amortization of the accounting system received from the head office is accepted for accounting.
• Дт "Additional paid-in capital" Кт "Amortization" - the amount of depreciation has been increased due to the increased price of the OS according to the revaluation data.
• Дт "Other expenses" Кт "Depreciation" - depreciation of fixed assets was carried out.

As you can see from the example, it is not difficult to create postings for accrual of depreciation, even for a novice accountant. The main thing is not to forget about the accounting policy and strictly adhere to the recommendations on the calculation of the amounts themselves, with the use of which correspondence will be drawn up.