Which Account Is Used for Tangible Fixed Assets?
Tangible fixed assets are accounted for under Account 211 – Tangible Fixed Assets.
Under Circular No. 99/2025/TT-BTC, Account 211 is used to reflect the existing value and increases/decreases of all tangible fixed assets based on their original cost.
Tangible fixed assets are physical assets held by an enterprise for use in its production and business activities and meeting the recognition criteria for fixed assets.
Guidance on Accounting for Increases in Tangible Fixed Assets
(1) Receiving capital contributions or allocated capital in the form of fixed assets
- Debit Account 211 – Tangible Fixed Assets
- Credit Account 411 – Owner’s Investment Capital
(2) Purchasing fixed assets and putting them into use immediately
- Debit Account 211: Purchase price excluding VAT
- Debit Account 1332: Deductible VAT (if applicable)
- Credit Accounts 111, 112, 331, 341, 352, …
If replacement equipment and spare parts are purchased together:
- Debit Account 211: Value of fixed assets
- Debit Accounts 152, 153: Equipment and replacement spare parts
- Debit Account 1332: Deductible VAT (if applicable)
- Credit Accounts 111, 112, 331, 341, 352, …
(3) Purchasing fixed assets under deferred payment or installment arrangements
Upon purchase:
- Debit Account 211: Cash price
- Debit Account 1332: Deductible VAT (if applicable)
- Credit Accounts 111, 112, 331, …
Periodically recognizing deferred payment interest:
- Debit Account 635 – Financial Expenses
- Credit Account 331 – Accounts Payable to Suppliers
Upon payment:
- Debit Account 331
- Credit Accounts 111, 112
(4) Fixed assets received as support, sponsorship, donations, or gifts
- Debit Account 211 – Tangible Fixed Assets
- Credit Account 711 – Other Income (if not subject to conditions)
- Credit Account 3387 – Deferred Revenue (if subject to conditions)
- Credit Account 4118 – Other Capital (if permitted to increase owners’ equity)
Direct costs related to the fixed assets:
- Debit Account 211
- Credit Accounts 111, 112, 331, …
(5) Self-produced fixed assets
When products manufactured by the enterprise are transferred for use as fixed assets:
- Debit Account 211 – Tangible Fixed Assets
- Credit Account 155 – Products (if issued from inventory)
- Credit Account 154 – Work in Progress / Production Costs in Progress (if put into use immediately)
- Credit Account 3331 – VAT Payable (if applicable)
👉 Quick Reminder
Account 211 = Tangible Fixed Assets → reflects the original cost of tangible fixed assets.
Common cases of increases in tangible fixed assets include:
Capital contribution → Purchase → Deferred/Installment payment → Donation/Sponsorship/Gift → Self-production.
(6) Tangible Fixed Assets Acquired Through Exchange
a) Exchange for a similar tangible fixed asset, immediately put into use:
- Debit 211: Carrying amount of the tangible fixed asset received
- Debit 214: Accumulated depreciation of the asset transferred
- Credit 211: Original cost of the asset transferred
b) Exchange for a dissimilar tangible fixed asset:
When transferring the tangible fixed asset:
- Debit 811: Carrying amount
- Debit 214: Accumulated depreciation
- Credit 211: Original cost
At the same time:
- Debit 131: Total payment value
- Credit 711: Fair value of the tangible fixed asset transferred
- Credit 3331: Output VAT payable (if applicable)
When receiving the tangible fixed asset:
- Debit 211: Fair value of the tangible fixed asset received
- Debit 1332: Deductible input VAT (if applicable)
- Credit 131: Total payment value
If additional cash is received: Debit 111, 112 / Credit 131.
If additional cash is paid: Debit 131 / Credit 111, 112.
(7) Acquisition of Buildings and Structures Attached to Land Use Rights
- Debit 211: Original cost of buildings and structures
- Debit 242, 213,…: Original cost of land use rights
- Debit 133: Deductible input VAT (if applicable)
- Credit 111, 112, 331,…
(8) Increase in Tangible Fixed Assets from Completed Capital Construction
If a project has been handed over and put into use but the final settlement has not yet been approved, the enterprise recognizes the fixed asset at a provisional cost for depreciation purposes. Once the final settlement is approved, any difference resulting in an increase or decrease in the original cost must be adjusted accordingly.
a) Capital construction accounted for within the same accounting system:
- Debit 211: Original cost of tangible fixed assets
- Debit 152, 153, 242,…: Related materials and tools
- Credit 241: Construction in progress
b) Capital construction accounted for separately by the Project Management Board:
- Debit 211: Original cost of tangible fixed assets
- Debit 152, 153, 242,…: Materials and tools
- Debit 133: Deductible input VAT (if applicable)
- Credit 136: Internal receivables
- Credit 331, 341,…: Payables (if applicable)
When the final settlement is approved:
- Decrease adjustment: Debit 138 / Credit 211
- Increase adjustment: Debit 211 / Credit relevant accounts
(9) Internal Transfer of Tangible Fixed Assets Within the Enterprise
Transferring unit:
- Debit 1361, 411: Carrying amount
- Debit 214: Accumulated depreciation
- Credit 211: Original cost
Receiving unit:
- Debit 211: Original cost
- Credit 214: Accumulated depreciation
- Credit 336, 411: Carrying amount
(10) Investment in and Acquisition of Fixed Assets Using the Welfare Fund
When completed and put into use:
- Debit 211: Total payment value
- Credit 111, 112, 331,…
At the same time:
- Debit 3532: Welfare fund
- Credit 3533: Welfare fund used to form fixed assets
(11) Costs Incurred After Initial Recognition of Fixed Assets
a) Routine repairs and maintenance
- Debit 623, 627, 641, 642,…
- Debit 133 (if applicable)
- Credit 111, 112,…
b) Periodic repairs and maintenance
When costs are incurred:
- Debit 2413
- Debit 1332 (if applicable)
- Credit 112, 152, 331, 334,…
Upon completion:
- Debit 242
- Credit 2413
Periodic allocation:
- Debit 623, 627, 641, 642,…
- Credit 242
c) Upgrading and renovation of fixed assets
When costs are incurred:
- Debit 2414
- Debit 1332 (if applicable)
- Credit 112, 152, 331, 334,…
Upon completion and putting the asset into use:
- Debit 211
- Credit 2414
👉 Key Takeaways
- Exchange of similar assets: Recognized at the carrying amount.
- Exchange of dissimilar assets: Recognized at fair value, with related income/expenses recognized from the exchange.
- Capital construction: Initially recognized at the provisional cost; adjusted after the final settlement is approved.
- Internal transfer: Transfer the original cost + accumulated depreciation + carrying amount.
- Routine repairs: Recognized as expenses.
- Periodic repairs: Account 241 → Account 242 → allocated to expenses.
- Upgrading and renovation: Account 241 → increase in the original cost under Account 211.
