Depreciation
This query is : Resolved
Navneet Kaur Chawla
(Querist)
02 September 2016
If W.D.V of Furniture remains just Rs 15, can we write it off in P&l A/c? Please explain its treatment with proper entry
CA SAGAR M. AHUJA
(Expert)
02 September 2016
Yes, You can written off the asset by passing the following entry
P&L account Dr.
To Furniture A/c
(being Asset written off)
P&L account Dr.
To Furniture A/c
(being Asset written off)
Amol S Joglekar
(Expert)
02 September 2016
normally, the thumb rule is if WDV reaches a point which is 5% of the initial cost of the asset, then same may be written off, provided the economic life of the asset is over
CA SAGAR M. AHUJA
(Expert)
02 September 2016
But you also think about materiality as the 15 Rs. amount is not material whether you write off it or not.
Thanks.
Thanks.
Message likes :
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Amol S Joglekar
(Expert)
02 September 2016
absolutely right..... INR 15 is something......which, I dont know why the same has remained in the books.....
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