What account 0100 is for
A building, a machine tool, a car, a computer: none of these is used up in a day, they serve the organisation for years. Such property is accounted for in group 0100. Under paragraph 3 of the Instructions, it brings together fixed assets owned by the organisation: those in use, those in conservation and those leased out under operating leases.
Which assets count as fixed assets is set in the organisation's accounting policy in line with NAS No. 5 "Fixed Assets" (para. 5).
Sub-accounts: a "home" for each item
The group has 12 sub-accounts, and each item is kept in the sub-account that matches its type.
| Sub-account | What for |
|---|---|
| 0110 "Land" | Land plots granted on the basis of ownership |
| 0111 "Land improvements" | Costs of changing the land layout, access roads, parking areas, improving the condition of walls and structures |
| 0112 "Improvements to fixed assets received under finance lease" | Capital costs of improving property held under a finance lease |
| 0120 "Buildings, structures and transmission equipment" | Buildings, structures, electricity, heat and gas transmission networks |
| 0130 "Machinery and equipment" | Power and working machines, measuring, control and laboratory equipment, other machinery |
| 0140 "Furniture and office equipment" | Furniture and office equipment for production and administration |
| 0150 "Computer equipment and computing hardware" | Computers and other computer equipment, computing hardware |
| 0160 "Vehicles" | Road, rail, water and air transport, trunk pipelines |
| 0170 "Working and productive animals" | Animals used as working power and animals that yield products |
| 0180 "Perennial plantings" | Greenery, decorative and fruit and berry plantings, green walls |
| 0190 "Other fixed assets" | Fixed assets not included above |
| 0199 "Fixed assets in conservation (mothballed)" | Items put into conservation in the established manner |
The description in each row briefly sums up the content of paragraphs 11–22.
An asset account: what that means
In the chart of accounts, 0100 has type "A" (asset). Under paragraph 3 of NAS No. 21, in an asset account the balance and increases of resources are recorded on the debit side and decreases on the credit side. So:
- a new item is received or its value rises on revaluation: debit;
- an item is sold, liquidated or transferred elsewhere: credit;
- the debit balance shows the initial (revalued) cost of the organisation's fixed assets.
What goes to the debit side
The account on the other side changes depending on where the item came from (table in para. 23):
| Where the item came from | Credit |
|---|---|
| Built by the organisation itself or by a contractor | 0810 |
| Purchased | 0820 |
| A finance lease ended and the item passed into ownership | 0310 |
| Contributed by a founder towards their share in the charter capital or received as payment for shares | 4610 |
| Received free of charge | 8530 |
| Received from a separate division, branch or subsidiary | 6110, 6120 |
| An item not on the books found in a stock-take | 9390 |
Under the same table, the debit side also records: an increase in initial cost as a result of modernisation, reconstruction and other improvements (Cr 0890); transfer of land improvement costs to 0111 (Cr 0850); transfer of costs of improving property under a finance lease to 0112 (Cr 0860); receipt of working and productive animals into 0170 (Cr 0840); an increase in value on revaluation (Cr 8510).
What goes to the credit side
Under paragraph 10, when an item is written off, its initial cost is transferred from 0100 to the debit of 9210 "Disposal of fixed assets". Under row 13 of the table in paragraph 23, the following are recorded this way: liquidation, sale, exchange, transfer free of charge, transfer as a contribution to charter capital, transfer as a property contribution to form the property of a non-governmental non-profit organisation, leasing out under a finance lease, a shortage or loss being identified, and settlement with a participant through a fixed asset when it leaves the legal entity. Transfer to a separate division (Dr 4110) and transfer into conservation (Dr 0199) are also recorded from the credit of 0110-0190. If the value is reduced on revaluation, 0110-0199 is credited (Dr 8510).
Points to watch
- Depreciation is not here. 0100 keeps an item at initial cost. Accumulated depreciation is kept separately, in 0200 "Depreciation of fixed assets". The difference between the two is the carrying amount in the balance sheet.
- Additional costs for land. Under paragraph 11, additional costs of buying land (a real estate agent's commission, a lawyer's fee, taxes related to the purchase, the cost of drainage ditches, clearing and levelling) are collected on the debit of 0110.
- Analytical accounting. Under paragraph 4, analytical accounting should make it possible to obtain separate information on fixed assets located in the republic and abroad.
- If each item is given an inventory number and the card shows the source of receipt (0810, 0820, 4610...), recording revaluation and disposal later becomes easier (practical tip).
Main journal entries 12
Debit and credit are as in the model table of Appendix 2 to NAS No. 21. The transaction text briefly restates the table row.
| Transaction | Debit | Credit | Source |
|---|---|---|---|
| A completed item put into service transferred to fixed assets | 0110–0190 | 0810 | NAS No. 21, para. 23, row 1 |
| An item acquired under a purchase agreement included in fixed assets | 0110–0190 | 0820 | NAS No. 21, para. 23, row 2 |
| At the end of a finance lease, the leased item taken into fixed assets | 0110–0190 | 0310 | NAS No. 21, para. 23, row 3 |
| A founder contributed a fixed asset towards their share in the charter capital | 0110–0190 | 4610 | NAS No. 21, para. 23, row 4 |
| A fixed asset received free of charge | 0110–0190 | 8530 | NAS No. 21, para. 23, row 5 |
| Initial cost increased as a result of modernisation or reconstruction | 0110–0190 | 0890 | NAS No. 21, para. 23, row 7 |
| The value of a fixed asset increased on revaluation | 0110–0199 | 8510 | NAS No. 21, para. 23, row 11, sub-row a) |
| The value of a fixed asset reduced on revaluation | 8510 | 0110–0199 | NAS No. 21, para. 23, row 11, sub-row b) |
| A fixed asset not on the books found in a stock-take and taken onto the books | 0100 | 9390 | NAS No. 21, para. 23, row 12 |
| The initial cost of an item sold, liquidated or otherwise disposed of written off | 9210 | 0110–0190 | NAS No. 21, para. 23, row 13 |
| A fixed asset transferred to a separate division | 4110 | 0110–0190 | NAS No. 21, para. 23, row 14 |
| A fixed asset transferred into conservation in the established manner | 0199 | 0110–0190 | NAS No. 21, para. 23, row 15 |
Example
"Shofirkon bosma" LLC (a fictional printing house) had the following fixed assets at the start of the year: a building (0120), 600,000,000 soums; printing equipment (0130), 240,000,000 soums; computers (0150), 36,000,000 soums. The total balance of 0100 was 876,000,000 soums. During the year:
| No. | Transaction | Dr | Cr | Amount, soums |
|---|---|---|---|---|
| 1 | A purchased offset printing machine (cost accumulated in 0820) put into service | 0130 | 0820 | 180,000,000 |
| 2 | A new founder contributed a lorry towards their share | 0160 | 4610 | 150,000,000 |
| 3 | A partner organisation gave two laptops free of charge | 0150 | 8530 | 12,000,000 |
| 4 | A colour printer not on the books found in a stock-take | 0100 | 9390 | 4,000,000 |
| 5 | An old paper-cutting machine sold (initial cost) | 9210 | 0130 | 60,000,000 |
Sources of the entries: table in para. 23, rows 2, 4, 5, 12 and 13 respectively. The printer is kept in sub-account 0150.
Year-end balance by sub-account:
| Sub-account | Calculation | Amount, soums |
|---|---|---|
| 0120 | unchanged | 600,000,000 |
| 0130 | 240,000,000 + 180,000,000 − 60,000,000 | 360,000,000 |
| 0150 | 36,000,000 + 12,000,000 + 4,000,000 | 52,000,000 |
| 0160 | 0 + 150,000,000 | 150,000,000 |
| Total 0100 | 1,162,000,000 |
Check: 876,000,000 + 180,000,000 + 150,000,000 + 12,000,000 + 4,000,000 − 60,000,000 = 1,162,000,000 soums. The depreciation accumulated on the machine sold is transferred from 0200 to 9210 by a separate entry; see the 0200 page for this (example prepared by the author).