Tire accounting principles
The main accounting parameters are: (click to expand)
- their number;
- model;
- tire brand;
- price;
- size.
Based on these indicators, accounting employees keep separate records of seasonal, summer and winter vehicle tires. At the same time, new and used spare parts are also taken into account separately. The purchase, their transfer into operation and other operations are reflected by the accounting service with account assignments (postings).
| Operation name | Accounting assignments |
| Buying a tire for a vehicle | DT 60, CT 51 (transfer of money for purchase),
DT 10, subaccount “Spare parts” (“Spare tires”, “New tires”), KT 60 (financial obligations for purchased spare parts),DT 19, CT 60 (VAT on the cost of purchased goods), DT 68, CT 19 (VAT deductible) |
| Putting the tire into use | DT 10, sub-account “Spare parts” (“Tires in the sub-report”), KT 10, sub-account “Spare parts” and “Spare tires” |
| Disposal of a car tire due to its failure | DT 20 (26, 44), CT 10, subaccount “Spare parts”, “Tires in the sub-account” |
The cost of purchased vehicle tires for the purpose of replacing worn-out ones is displayed by the accounting service on account 10 “Materials”, subaccount “Spare parts”.
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| Anna (guest) [email protected] | |
| Please tell me, the organization shaved a set of car tires and immediately began using them, how to reflect these operations in accounting. accounting? Thank you all in advance |
| I want to draw the moderator's attention to this message because: Notification is being sent... |
| Tatiana (guest) | #2[9885] February 27, 2009, 5:48 pm |
D.60 K.51 Paid for tires to the supplier D.10 K.60 New tires arrived at the warehouse D.18 K.60 VAT reflected on received tires D.20,23,26 K.10 Cost of tires supplied to the vehicle I would like to draw the moderator's attention to this message because:
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| Elena [email hidden] Belarus, Minsk Wrote 1805 messages Write a private message Reputation: 103 | #3[9892] February 27, 2009, 18:10 |
Car tires CANNOT be written off as an expense at the time of installation on the vehicle. It is necessary to keep a record card of tire mileage and standards. Car tires purchased for replacement differ in their purpose, design, tread pattern, climate version and dimensions. Acceptance of tires is carried out in accordance with the Regulations on the acceptance of goods by quantity and quality, approved by Resolution of the Council of Ministers of the Republic of Belarus dated September 3, 2008 No. 1290, and the Rules for the operation of automobile tires approved by Resolution of the Ministry of Transport of the Republic of Belarus dated December 21, 2000 No. 52. Technical characteristics of automobile tires, of course, are important for drivers, mechanics and maintenance personnel, while accountants are interested in their purpose and operating features. Based on these indicators, they can be divided into tires for constant use (all-season tires) and periodic use (winter and summer tires). The latter have better performance properties, but nevertheless, in order to save money, organizations often equip cars with “all-season” tires, in which drivers drive more than one thousand kilometers. After the mileage exceeds the mileage specified by the manufacturer or the tires are damaged, they must be replaced. Tires in the warehouse are kept track of by quantity, size, model, tire grade and cost. Accounting for new and used tires is organized separately. Let's consider the features of accounting for the replacement of each of these types of car tires. Accounting for all-season tires The cost of car tires (tire, tube and rim tape), located on wheels and in stock with a vehicle, coming along with a new car (or trailer), is included in its initial cost and is taken into account in account 01 “Fixed Assets”. The cost of tires purchased by an organization to replace worn or damaged ones is taken into account in account 10 “Materials”, subaccount 5 “Spare parts”. At the same time, the Instructions for the application of the Standard Chart of Accounts, approved by Resolution of the Ministry of Finance of the Republic of Belarus dated May 30, 2003 No. 89 (hereinafter referred to as Instruction No. 89), recommend keeping records in this account of tires that are both in stock and in circulation. Therefore, it is advisable to keep separate records of rubber that is subject to restoration and repair. To account for the cost of tires to account 10-5, the organization’s accounting policy may provide for second- and third-order subaccounts, for example: - “Car tires in stock” (account 10-5-3-1); — “Car tires in circulation” (score 10-5-3-2); — “Car tires subject to restoration” (score 10-5-4). New tires, like any other inventory, are accepted for accounting at actual cost. When purchasing tires for a fee, the actual cost is recognized as the amount of the organization's actual costs (clause 25 of Chapter 4 of the Instructions on the Procedure for Accounting for Materials, approved by Resolution of the Ministry of Finance of the Republic of Belarus dated July 17, 2007 No. 114). In accounting, the purchase of car tires is reflected as follows: Funds were transferred to the tire supplier Dt 60 Kt 51 New car tires were capitalized Dt 10.5.1 Kt 60 For the amount of VAT on the cost of car tires Dt 18 Kt 60 Accepted for deduction of VAT issued by the supplier of car tires Dt 68 Kt 18 in the subaccount “Car tires in circulation”, in addition to the tires directly located on the wheels of vehicles, tires issued as reserve, as well as those in circulation by the technical maintenance service and in designated storage areas are taken into account. For each tire, the organization creates a card for recording the operation of a car tire. Its form is given in Appendix 17 to Rules No. 52, which are the main document regulating the maintenance and operation of tires on the territory of the Republic of Belarus. The card is installed on each tire, incl. and those that were taken into account in the original cost of the car. It contains information about the technical condition of the tire, mileage (its indicators must be entered monthly), and defects. When a tire is removed from service, the registration card indicates: the date of dismantling, the total mileage, the name of the reason for removal, determined by the commission, where the tire is sent - for repair, for restoration, for deepening the tread pattern, for scrap or a complaint. The procedure for filling out the card is as follows: CARD RECORDING the operation of a car tire (new, reconditioned, used - underline what is necessary) Tire designation 175 R/6C Tire model BI 522 GOST or TURB tire specification 147621133.104-97 Serial number 3007BEL 090144 (all numbers and letters) Ply rate or load capacity index 101/99N Warranty/operational mileage rate 40,000 Cost of a set of tires RUB 78,550. Enterprise - manufacturer of a new tire or a tire repair company for a retreaded tire OJSC "Belshina" Name of the motor transport enterprise ODO "Astra" Model of the car (trailer), its state number Date Tire mileage, thousand km Technical condition of the tire when worn -new Reasons for removing the tire from service Signature of the driver installing the tire on the running or spare wheel of the car Tire removal from the vehicle within a month from the start of operation GAZ KM 04/20/2008 2,035 2,035 new Petrov E.N. Responsible for recording the operation of the tire Trifan Trifan V.A. Conclusion of the commission to determine the suitability of the tire for use Chairman of the commission Ivanov Ivanov A.P. Members of the commission Levin O.A. Levin Sidorenko Sidorenko E.N. Notes 1. An accounting card is created for each tire received by the auto company, indicating its cost. 2. Filling out all fields of the card is mandatory. Reflection in accounting for tire replacement In Appendix 33 to Rules No. 52, for each brand of tire, the operational mileage rate of one tire in thousands of kilometers is established. According to clause 132 of Rules No. 52, vehicle owners (managers of motor transport organizations) are allowed to reduce or increase tire mileage standards, taking into account operating conditions. The amount of reduction or increase in tire mileage standards is established by order of the head of the enterprise (vehicle owner). When putting tires into service, the wording may be as follows: “to replace tires that are worn out or have become unusable for other reasons”; “for the seasonal change of summer tires to winter ones or winter to summer ones.” Replacing tires that are worn out or have become unusable for other reasons can be considered as carrying out routine repairs (replacement of worn parts) of a vehicle, which is classified as a fixed asset (subclause 1.3.13, clause 1.3 of the Regulations on the maintenance and repair of rolling stock of road transport, approved by order Ministry of Transport of the Republic of Belarus dated 06/03/1998 No. 110-C). Costs for maintaining motor vehicles in working condition are included in the cost of products (works, services) and are reflected in the debit of production cost accounts (sales expenses) in correspondence with the credit of production cost accounts in accordance with clause 20 of the Instructions for Accounting for Fixed Assets, approved by the resolution of the Ministry of Finance of the Republic of Belarus dated December 12, 2001 No. 118 (as amended by the resolution of the Ministry of Finance of the Republic of Belarus dated December 29, 2007 No. 207), and subclause 2.2.6.2 clause 2 of the Basic provisions on the composition of costs included in the cost of products (works, services), approved Ministry of Economy of the Republic of Belarus 26.01.1998 No. 19-12/397, Ministry of Statistics of the Republic of Belarus 30.01.1998 No. 01-21/8, Ministry of Finance of the Republic of Belarus 30.01.1998 No. 3 and Ministry of Labor of the Republic of Belarus 30.01.1998 No. 03-02-07/300. This fully applies to cases related to the purchase of car tires and their subsequent installation on a car to replace worn ones. Therefore, in this case, the following entries are made in accounting: The transfer of new tires to replace worn ones is reflected Dt 10-5-3-2 Kt 10-5-3-1 The cost of new tires is written off to cost accounts Dt 20, 26, 44 Kt 10-5-3-2 Accounting for seasonal tires When the service mileage limit is reached, tires must be replaced and deregistered. However, removing summer tires from a car at the beginning of winter does not entail their removal from service and scrapping if they are technically fit for further use. In other words, changing seasonal tires does not indicate their complete wear and disposal. Replacing summer tires with winter ones and vice versa is a necessary condition for maintaining the performance properties of the car, and this cannot be called a repair, since there is no disposal of worn tires. Therefore, this operation can be considered as related to the maintenance of the car. The question arises: how to take it into account? Since the regulatory documents do not directly indicate the methods of accounting for seasonal tire replacement operations, the organization has the right to independently develop an accounting procedure and consolidate it in its accounting policies. Let's consider several accounting options. First option. As a general rule, as materials are released from the warehouse into operation, they are written off from material asset accounts to production cost accounts. In accounting, the cost of tires, initially included in the composition of materials, is written off as an expense at the time of installation and is not subsequently subject to adjustment when the season changes based on the actual time of their operation until the mileage resource is reached. Payment was made to the supplier DT 60 Kt 50 Winter tires DT 10-5 Kt 60 were credited VAT on new tires DT 18 Kt 60 VAT accepted for deduction DT 68 Kt 18 The cost of tires when installed on a car DT 20, 26, 44 Kt 10-5 was written off -3-2 In this situation, the return of summer tires to the warehouse is not reflected in accounting, but is recorded in the car tire performance cards indicating the date and reason for their removal from the car. Second option. According to Instruction No. 89, when departments return unused materials previously written off for production to the warehouse, their cost must be attributed to the reduction of corresponding costs. That is, when returning summer tires to the warehouse at the end of the season, the cost of the organization should be reduced by their cost. Removed tires can be valued at the value prevailing on the date of return based on the price of their possible use, taking into account data on the actual mileage. Let's look at the accounting treatment according to the second option, using the data from the previous example. At the same time, the organization purchased a set of summer tires worth RUB 314,200 before the spring-summer season. (VAT amount - 56,556 rubles). At the end of the season, the tires were replaced with winter ones. Their mileage during the summer was 13,000 km. In accordance with the Temporary standards for the operational mileage of vehicle tires RD 3112199-1085-02, summer tires of Belarusian production for the GAZ 33021 with size 175 R/6C are written off after a mileage of 40,000 km. The price of possible use of tires is calculated taking into account wear, which is determined based on the ratio of actual and standard mileage. Depreciation is: 13,000 km / 40,000 km x 314,200 rubles. = 102,115 rub. Thus, the price of possible use of tires will be 212,085 rubles. (RUB 314,200 - RUB 102,115). In this case, the following entries are made in the accounting: The return of summer tires to the warehouse (taking into account wear and tear) when replacing the summer set with a winter one is reflected Dt 10-5-3-1 Kt 20, 26, 44 When installing winter tires on a car, their cost is written off to the accounts cost accounting Dt 20, 26, 44 Kt 10-5-3-2 Third option. The seasonal nature of tire operation implies the fact of their temporary use. Since Instruction No. 89 provides for the accounting of tires put into operation on account 10 “Materials”, subaccounts 10-5-3-1 “Car tires in stock” and 10-5-3-2 “Car tires” can be opened for it. in operation." Until the standard operating mileage is reached, tires can be accounted for and reflected in the corresponding sub-accounts. That is, you can write off car tires to cost accounts after the tires reach the established mileage or fail. In accounting, these transactions are reflected in the following entries: Contents of the transaction Debit Credit Reflects the return of summer tires to the warehouse at the end of the season 10-5-3-1 10-5-3-2 Reflects the installation of winter tires on the car 10-5-3-2 10- 5-3-1 The cost of summer tires was written off after the tires reached the established mileage or failed 20, 26, 44 10-5-3-2 Fourth option. Reflecting the seasonality of tire use, an organization can write off the cost of purchasing tires evenly over the period of their operation based on data on the actual monthly mileage of tires, calculating using the formula: amount of costs = cost of tires / standard mileage x actual mileage for the reporting period. For example, in May the mileage was 2,035 km. The accounting statement will reflect the following calculation: RUB 314,200. x 2,035 km / 40,000 km = RUB 15,985, and during the season, on the last day of each month, part of the cost of tires will be written off to cost accounts. The accounting will reflect: - on the date of installation of tires on the car (for example, on May 1, 2008): Contents of the transaction Debit Credit Reflects the installation of summer tires on the car 10-5-3-2 10-5-3-1 - on 31 May 2008: Contents of the transaction Debit Credit Transferred to expenses the cost of tires based on data on the actual monthly mileage of tires (etc. until the end of the season in the amount determined by the above formula) 20, 26, 44 10-5-3 -2 - when replacing tires at the end of the season (for example, November 15): Contents of transaction Debit Credit For the remaining cost of tires (when writing off as expenses the amount calculated during the period of their operation based on data on actual monthly mileage) 10-5-3 -1 10-5-3-2 Accounting for worn-out tires Determination of the technical condition of tires subject to write-off is carried out by a commission appointed by order of the head of the organization. The commission determines the possibility of their restoration or complete unsuitability. Regarding prematurely retired tires, the commission also needs to establish the reasons and those responsible. As mentioned above, for each tire presented for write-off, a work record card must be completely filled out. The operational standards for the mileage of car tires are contained in Appendix 33 to Rules No. 52. After the mileage of car tires reaches the standard value, they must be replaced without fail for road safety purposes. However, premature tire wear is also not allowed. Car tires removed from vehicles due to unsuitability, but which can be repaired or retreaded, are transferred to a warehouse. At the same time, they are assessed at the price of possible use and are taken into account in subaccount 10-5-3-3 “Car tires subject to retreading”. When transferring tires for retreading, their cost is transferred to subaccount 10-7 “Materials transferred for external processing.” Received retreaded tires are taken into account at their total cost, including the cost of their retreading. In accounting, these transactions are reflected in the following entries: Contents of the transaction Debit Credit The cost of tires subject to restoration is reflected 10-5-4 20, 23, 25, 26, 44 The transfer of tires for restoration is reflected 10-7 10-5-4 The cost of restoration work is reflected tires 10-7 60 In the amount of VAT on the cost of work 18 60 Retreaded tires are posted to the warehouse 10-5-3-1 10-7 I want to draw the moderator’s attention to this message because:
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| Andrej [email hidden] Belarus, Minsk Wrote 218 messages Write a private message Reputation: | #4[9894] February 27, 2009, 6:13 pm |
simultaneously with the wiring (.20,23,26 K.10 Cost of tires supplied to the vehicle), a card for recording the operation of the automobile tire is created for each tire. Data on the mileage of the car is entered into this card every month. I want to draw the moderator's attention to this message because:
Notification is being sent...
| Andrej [email hidden] Belarus, Minsk Wrote 218 messages Write a private message Reputation: | #5[9898] February 27, 2009, 18:23 |
In the process of using fixed assets, costs arise that are aimed at maintaining fixed assets in working condition. Such costs include expenses for technical inspection and maintenance, for all types of repairs, which are included in the cost of products (works, services) (clause 20 of the Instructions for accounting of fixed assets, approved by Resolution of the Ministry of Finance of the Republic of Belarus dated December 12, 2001 N 118 ). For repair work in accordance with Appendix 8 to the Instructions on the procedure for calculating depreciation of fixed assets and intangible assets, approved by Resolution of the Ministry of Economy of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of Statistics and Analysis of the Republic of Belarus and the Ministry of Architecture and Construction of the Republic of Belarus dated November 23, 2001 N 187/ 110/96/18, includes work to restore the main physical, technical and aesthetic indicators, consumer qualities of the object, lost during operation, while the design and equipment of the object remains unchanged. According to sub. 2.2.6.2 Basic provisions on the composition of costs included in the cost of products (works, services), approved by the Ministry of Economy of the Republic of Belarus on January 26, 1998 N 19-12/397, the Ministry of Statistics and Analysis of the Republic of Belarus on January 30, 1998 N 01-21/8, Ministry of Finance of the Republic of Belarus 01/30/1998 N 3, Ministry of Labor of the Republic of Belarus 01/30/1998 N 03-02-07/300 (hereinafter referred to as the Basic Provisions), costs of maintaining fixed assets used in business activities in working order (technical inspection costs and maintenance, for current, medium and major repairs),
are included in the cost of products (works, services). The cost of tires installed on vehicles involved in business activities is written off to replace worn-out ones.
cost of products (works, services) as the cost of repairing fixed assets . I want to draw the moderator's attention to this message because:
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| Yaroslav [email hidden] Belarus, Minsk Wrote 1118 messages Write a private message Reputation: | #6[42997] October 23, 2009, 16:21 |
I agree with Andrey, the auditor herself personally explained that it is necessary to write off the cost of tires, and put them on record in quantitative terms, fill in the tires, and then you know. I want to draw the moderator's attention to this message because:
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Being a leader means not stopping good people from working. P. Kapitsa
| Julie [email hidden] Belarus Wrote 636 messages Write a private message Reputation: | #7[76300] January 16, 2010, 5:02 pm |
those. I bought tires this month and immediately put them on expenses? I want to draw the moderator's attention to this message because:
Notification is being sent...
| Yaroslav [email hidden] Belarus, Minsk Wrote 1118 messages Write a private message Reputation: | #8[76326] January 16, 2010, 17:50 |
Dct
Juli wrote:
those. I bought tires this month and immediately put them on expenses?
Everything is correct, but taking into account the fact that they are supplied to the car, they may still lie in the warehouse.
I want to draw the moderator's attention to this message because:
Notification is being sent...
Being a leader means not stopping good people from working. P. Kapitsa
| Julie [email hidden] Belarus Wrote 636 messages Write a private message Reputation: | #9[76337] January 16, 2010, 18:22 |
Bronsi wrote:
Dct
Juli wrote:
those. I bought tires this month and immediately put them on expenses?
Everything is correct, but taking into account the fact that they are supplied to the car, they may still lie in the warehouse. Thanks a lot. In principle, I did just that, but I read a lot about write-offs based on mileage and was already scared, because... I've been writing off tires like this for a long time now.
I want to draw the moderator's attention to this message because:
Notification is being sent...
| Julie [email hidden] Belarus Wrote 636 messages Write a private message Reputation: | #10[76345] January 16, 2010, 6:45 pm |
Sorry for being annoying. But this situation has arisen. The car is on a used contract, I changed its tires last month, this month I’m paying for the costs. and the car was in an accident. How can I write this off correctly? We will not restore the car (it turns out that the contract automatically terminates or an additional agreement is needed) I want to draw the moderator’s attention to this message because:
Notification is being sent...
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Tax accounting of tires
When purchasing a car, the price of installed and spare tires is combined with the initial cost of the vehicle (Tax Code of the Russian Federation, Article 257). These spare parts do not appear on the accounting accounts as separate objects. Tires purchased separately are not included in the purchased vehicle and are not added to its cost. Here, tax accounting of spare parts is regulated by the Tax Code of the Russian Federation:
- Art. 254 (payer’s expenses for production and economic needs);
- Art. 260 (restoration of fixed assets);
- Art. 264 (maintenance and use of official transport).
So, for example, according to tax legislation, separately purchased spare parts can be taken into account as material expenses for the purchase of materials necessary for the maintenance of fixed assets. That is, tires in such cases are considered spare parts for a car, which are recorded at their cost among inventories. Expenses for their repair can be classified as other.
Expenses are considered for tax purposes in the tax period valid at that time. All expenses under the accrual method are recognized at the time the tires are assembled on the car. Spare parts removed from vehicles are not considered returnable waste or residual stock.
How to correctly write off tires in accounting
Then they arrive at account 10 in correspondence with the expense accounts to which they were previously written off.
This approach is based on the norm of paragraph 112 of the Methodological Instructions for Accounting for Materials. It says that the return of unused materials to the warehouse is issued with invoices or limit-fetch cards.
In this case, the submitted materials are simultaneously written off from the reporting unit of the organization. If these materials were written off for production, their cost is charged to reduce the corresponding costs.
Attention
Accounting for tires purchased separately from the car So, in the case when car tires are purchased along with the car, they are recorded in account 01 “Fixed Assets” as part of the initial cost of the car. The practice of car operation shows that car tires deteriorate much faster than the car with which they were purchased.
Let us turn to the regulations regarding the procedure for maintaining accounting records. Let's start by stating the fact that a car tire is not an object of fixed assets.
Accounting documentation for tire operation
A specialized accounting form of the card is created by the technical service of the relevant division of the organization according to form No. 424-APK separately for each vehicle tire (new, used or refurbished).
The main purpose of the registration card is to document the movement of tires in use from the time they are assembled until they completely fail. The card contains the following information: (click to expand)
- date of manufacture, manufacturer, price, as well as the name of the wheels and serial number;
- technical condition (existing defects, damage);
- mileage (the previous one is for used tires, and the actual mileage for each month is for all types of tires);
- date of tire replacement, numbers of removed and reassembled tires;
- dismantling time, total mileage, tread pattern data, for what purpose and for what reason it was taken out of service (in case of deregistration of the tire).
The specified standard accounting forms are filled out completely and stored according to vehicle numbers, and are closed when the spare part is sent for disposal.
The reason for writing off or replacing a tire is not its mileage if its technical condition is satisfactory and requires modernization, reconstruction, repair, or further operation. After restoration, other cards are issued for vehicle spare parts. In isolated cases, when there are no such cards, you can get some information from the waybill, which is issued for the vehicle.
Operating mileage rate for write-off
Russian legislation does not establish specific standards for the write-off of vehicle tires. With regard to their operational mileage, the regulations of the Ministry of Transport of the Russian Federation, set out in Letter No. 03-01/10-2830sh dated 08/24/2012, apply. Thus, according to the letter, the standards are determined by the manufacturer.
Accordingly, the head of the organization has the right to develop and approve standards by his own order based on the average mileage, using the available information:
- factory manufacturer;
- according to the method for determining mileage standards of the Temporary Standards (RD 3112199-1085-02) as amended on December 7, 2006 (in situations identical to the one under consideration, it can be used as a sample);
- experience in organizing transport operation.
Thus, according to the standards of RD 3112199-1085-02, the mileage rate established by the organization should not be less than 25% of the average mileage parameter.
| Manufacturer | Average tire mileage parameters (approximate figures), thousand km |
| Russian | 40–45 (passenger cars),
up to 100 (trucks) |
| Foreign | 50—55 (passenger cars),
up to 180 (trucks) |
In any case, independent development according to the standards must be financially justified and documented.
Tire write-off act
Approved by order of the Ministry of Natural Resources dated 10/04/2011 N 413-OD
ACT for the write-off of tires. A commission consisting of ____________________________________________________________ (position, surname) ___________________________________________________________________________ ___________________________________________________________________________ appointed by order N ________ dated “___” _______________ 20__, examined the tires accepted for use in ___________________ 20__ and recognized they have become unusable in _________________________________________________ (structural unit) and are subject to scrapping. Tires removed from the vehicle ______________________ N ______________________ ————————————————————————— ¦ N ¦Tire designation ¦Factory ¦ Actual ¦Operational standard ¦ ¦p/p¦ ¦ number ¦mileage, thousand km ¦ mileage, thousand km ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ +——————+ ¦ ¦ ¦ ¦ ¦size¦ model ¦ ¦ ¦ ¦ +—+——+—— —-+———-+—————+————————+ ¦ 1 ¦ ¦ ¦ ¦ ¦ ¦ +—+——+———-+———-+——— ——+————————+ ¦ 2 ¦ ¦ ¦ ¦ ¦ ¦ +—+——+———-+———-+—————+———————— + ¦ 3 ¦ ¦ ¦ ¦ ¦ ¦ —-+——+———-+———-+—————+————————- When examining decommissioned tires, it was determined: the tires arrived unusable, 100% tread wear, subject to recycling. The commission’s conclusion: the tires should be removed from service and sent for recycling.
Accounting for wear and replacement of car tires
It is allowed to consider the replacement of unusable (worn out) specified spare parts as part of the repair. Then you should write off production costs and expenses for repairing the fixed asset. Costs associated with repairs are displayed by the accounting department using DT accounts for recording expenses for production (sales), CT accounts for accounting for expenses incurred. Thus, DT 20, 26, 44, KT 10, subaccount “Tire in the sub-account” reflects the inclusion of the price of seasonal vehicle spare parts in expenses for normal activities after their wear.
Worn-out automobile parts that are subject to modernization, repair, or reconstruction are included in the warehouse. Their accounting is kept in the subaccount “Tires subject to restoration”, “Materials sent for recycling”. The price is displayed as follows: DT 10, subaccount “Tire for restoration”, KT 91-1.
Changing seasonal vehicle tires is an integral part of the maintenance of a fixed asset, aimed at maintaining the characteristics of the vehicle in proper condition. The costs associated with this are recognized as expenses in the ordinary course of business. Their accounting department displays DT accounts for production (sales) expenses and CT accounts for production expenses (related to service costs).
But when replacing seasonal spare parts and sending them to the warehouse, their price is related to the reduction of expenses for current activities: DT 20 (26, 44), CT 10, subaccount “Tires in subaccount”. To display the replacement of summer and winter vehicle tires, account assignments are used for account 10. For example, when assembling winter tires, the price of vehicle tires put into use is displayed as follows: DT 10, subaccount “Tire in subaccount”, CT 10, subaccount “Spare tire”.
At the end of the season, winter parts are removed and summer parts are assembled. To display the price of the removed winter version, account assignment is used: DT 10, subaccount “Spare tire”, KT 10 “Tire in subaccount”. The price of the assembled summer version instead of the winter one will be displayed by account assignment: DT 10, subaccount “Tire in subaccount”, KT 10, subaccount “Spare tire”.
Example 1. Taking into account the cost of all-season car tires when purchasing them
Felix LLC purchased a set of all-season tires for a vehicle. Almost immediately, the worn-out parts were replaced with new ones, just purchased. The accounting service displayed all actions using account assignments.
| Operation name | Accounting assignments |
| Receipt of vehicle spare parts to the warehouse | DT 10, subaccount “Spare parts” and “Spare tires”,
CT 60. |
