SOME REFERENCE POINTS WHEN LIQUIDATING COMPANY ASSETS

I. The company will need to issue a VAT invoice for the income received from the liquidation of the property (TS).

II. Normally, it is necessary to prepare some additional documents as follows to store at the company:

– Minutes of setting up the council for liquidation of TS.
– Decision to liquidate TS.
– Record of inventory of liquidated TS.
– Minutes of TS liquidation.
– The economic contract with the buyer of the liquidated TS (if any).
– Minutes of delivery of TS to the buyer.

(The appendix of Circular No. 133/2016/TT-BTC and Circular 200/2014/TT-BTC has issued some related forms for reference purposes only)

III. The remaining value that has not been fully allocated / fully depreciated (accounting to 811 – Other expenses) will be included in reasonable expenses when determining corporate income tax according to current regulations.

IV. The accounting reference is as follows (when liquidating fixed assets):

– Reflect the amount of income received:
      Debit 111, 112, 131 (total payment price)
         Credit 711 – Other income
         Credit 3331 – VAT payable

– Record a decrease in the value of liquidated assets:
      Debit 214 – Depreciation of fixed assets (depreciated value) if any
      Debit 811 – Other expenses (residual value of TS)
         Credit 211, 213, 242