1. If the residual value of an assets is Nil as per companies act 1956. but according to new companies act 2013, this is @ 5% of the gross value of the assets. Further the W.D.V. as on 31 march 2014 is Rs. 5000/- and the residual value of that assets is 8000/- then what will be the treatment of such assets.
2.if the residual value of an Assets is Rs. 5000/- and the WDV of such Assets is Rs. 8000/- but the remaining useful life of such assets is nil then what will be the treatment with such Assets.
Please send me your suggestion as soon as possible with proper provisions.
18 June 2015
Dear Sir, According to Schedule II Note 7 (b) of the companies act 2013 stated that :-
After retaining the residual value, shall be recognized in the opening balance of retained earnings where the remaining useful life of an assets is nil.
Please Sir tell me how it will be recognized in the opening balance of retained earnings.
CAclubindia
