Fixed Asset Removal Form
Understanding this form
The Fixed Asset Removal Form is a business form used by employees to formally request the removal of company assets from the premises. This document is essential for tracking the return of property when an employee leaves the company. Unlike general asset removal requests, this form includes specific clauses related to authorization for wage deductions if items are not returned within a specified timeframe.
Key components of this form
- Employee information section: Enter the name and contact details of the employee requesting asset removal.
- Asset details section: Specify the property or equipment being removed, including identification numbers and descriptions.
- Authorization clause: Acknowledge understanding of the policy regarding wage deductions for unreturned items.
- Department manager approval: Requirement for manager's signature to authorize the removal of the asset.
- Expiration date for the removal: A clause indicating the date by which the asset must be returned.
Common use cases
This form should be used when an employee is leaving the company and wishes to take company property with them or when there is a need to formally record the removal of assets. It is crucial in situations where the company must ensure that its property is returned or accurately accounted for, particularly upon the termination of employment.
Intended users of this form
- Employees planning to leave the company and wish to remove company assets.
- Managers and supervisors responsible for approving asset removals.
- Human resources personnel managing employee terminations.
Completing this form step by step
- Fill in the employee's details, including name and contact information.
- List the assets to be removed, providing any identification numbers if applicable.
- Read and understand the authorization clause regarding wage deductions.
- Obtain the necessary signature from your department manager to finalize the request.
- Submit the form to the designated HR personnel for processing.
Does this form need to be notarized?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to provide complete asset details, which can delay processing.
- Not obtaining a manager's signature before submission.
- Overlooking the expiration date for return, leading to confusion.
Benefits of using this form online
- Convenience of completing the form from any location using Adobe Acrobat or Word.
- Editability allows for corrections and adjustments before final submission.
- Accessibility of legal forms drafted by licensed attorneys ensures accuracy and compliance.
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FAQ
When a fixed asset is eventually disposed of, the event should be recorded by debiting the accumulated depreciation account for the full amount depreciated, crediting the fixed asset account for its full recorded cost, and using a gain or loss account to record any remaining difference.
The scrap value can also be used to calculate the depreciation expense. Using our example above, if the company estimated a $3,000 residual value for the machinery at the end of 8 years, then it can calculate its depreciation expense per year to be ($75,000 - $3,000) / 8 = $9,000.
The entry to remove the asset and its contra account off the balance sheet involves decreasing (crediting) the asset's account by its cost and decreasing (crediting) the accumulated depreciation account by its account balance.
Disposal of an Asset The machine's book value or disposal value can be calculated by subtracting from original cost, its depreciated cost. For instance, the depreciation value of machine at time of sale is $4000, means its book value is $1000. The company will try to sell the machine at least at its book value.
You can scrap an asset anytime using the "Scrap Asset" button in the Asset record. You will be asked for confirmation, click on Yes and the asset will be scrapped. The "Gain/Loss Account on Asset Disposal" account mentioned in the Company is debited by the Current Value (After Depreciation) of the asset.
Derecognition of an asset occurs whenever an asset is disposed of or is not expected to provide any future benefits from either its use or disposal. As a result, the asset is removed from the financial statements. Disposal of a long-lived operating asset is effected by selling it, exchanging it, or abandoning it.
Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset. Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.
Write off an asset when it is determined that it is no longer useful. The journal entry is as follows: Credit (asset to be written off), Debit (accumulated depreciation), and Debit (loss on disposal).
Another way to write-off the asset is providing for a reduction in carrying value of the asset. This amount is usually charged to expense as it is considered as the cost of doing business. The term writes off refers to the value of the asset, the amount is written off and not the asset itself.
