Disposing of fixed assets (FA), especially trucks, is a necessary activity for many transportation businesses. A truck fixed asset sale contract must comply with legal regulations and be accurately accounted for. This article provides detailed guidance on the disposal process, accounting methods, and issues related to a company’s truck fixed asset sale contract.
Truck Fixed Asset Sale Contract: Concepts and Regulations (en_US)
Trucks fall under the tangible fixed assets category, used in transportation activities, with a usage period of over one year and a value exceeding VND 30 million. When a truck no longer meets operational needs, is severely damaged, or the company needs a replacement, disposal through a sale contract is necessary.
Regulations on fixed asset disposal are clearly stated in Circular 200/2014/TT-BTC and Circular 133/2016/TT-BTC. Businesses must comply with these regulations to ensure legality and transparency during the disposal process.
Truck Disposal Process and Sale Contract (en_US)
The truck disposal process includes the following steps:
- Prepare a disposal request: The truck management department prepares a request and submits it for leadership approval.
- Issue a disposal decision: The company’s leadership issues a decision to dispose of the truck.
- Establish a Disposal Council: The council includes representatives from the leadership, accounting, asset management department, and related parties.
- Determine the disposal method: Auction or direct sale through a contract.
- Prepare a disposal record: After completing the disposal, prepare a record and complete the disposal file.
A truck fixed asset sale contract is an important legal document that must clearly state the following information:
- Buyer and seller.
- Truck information: license plate, chassis number, engine number, year of manufacture.
- Selling price, payment method.
- Responsibilities of the parties.
- Dispute resolution terms.
Accounting for Truck Fixed Asset Sale Contracts (en_US)
The accounting method depends on the purpose of the truck and its depreciation status:
1. Trucks used in production and business:
- Fully depreciated: Reduce the original cost (Account 211) and accumulated depreciation (Account 214). Income from the disposal is recorded in Account 711, and disposal expenses are recorded in Account 811.
- Not fully depreciated: Reduce the original cost (Account 211) and accumulated depreciation (Account 214). The remaining value is recorded in Account 811.
2. Trucks used for internal purposes or projects: Use Account 466 to reflect related income and expenses.
3. Trucks used for welfare activities: Use Account 353 to reflect related income and expenses.
Example of a Truck Fixed Asset Sale Contract (en_US)
Company A sells a fully depreciated truck for VND 50 million. The original cost was VND 100 million, and accumulated depreciation was VND 50 million. Disposal costs are VND 1 million. Accounting is as follows:
- Debit Account 214 – VND 50 million
- Debit Account 811 – VND 1 million
- Credit Account 211 – VND 100 million
- Debit Account 111 – VND 50 million
- Credit Account 711 – VND 49 million (VND 50 million – VND 1 million)
Conclusion (en_US)
A company’s truck fixed asset sale contract must be implemented correctly, ensuring legality and transparency. Accounting must be accurate, reflecting the true financial situation of the business. “Xe Tải Mỹ Đình” recommends that businesses consult with experts or use fixed asset management software to ensure compliance with regulations.