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Company accounts depreciation

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(Querist)
20 September 2018 What was the accounting treatment for tangible fixed assets written off i.e the life of the asset is completed. How to show in the profit and loss account.
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Sagar R Baheti

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Sagar R Baheti (Expert)
20 September 2018 As per Company Act provisions for Depreciation, you need to maintain 5% of assets value till the disposal or sale of assets. After completion of assets useful life you need to maintain 5% value of assets in balance sheet. For example If you Purchased Furniture & Fixtures on 01/07/2007 at Rs. 100000/-. Useful life of Furniture & Fixture is 10 years. You need to maintain 5% of cost i.e 5000 till you use the assets. No depreciation charged on 5% amount.
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Ramachandra Reddy

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Ramachandra Reddy (Querist)
20 September 2018 Thanks for the reply and what to do after the life is completed and only the residual value is left as wdv
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Sagar R Baheti

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Sagar R Baheti (Expert)
21 September 2018 After end of assets life residual value is carried to Balance sheet till the assets exist in your business.
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