Depreciation on plant & machinery
This query is : Resolved
26 October 2013
dear Sir,
Please advise what is the treatment of Fixed asset in Balance Sheet (as per Companies Act, 1956) when WDV Of Any Fixed Asset has come below 5% of its original cost.
Please advise what is the treatment of Fixed asset in Balance Sheet (as per Companies Act, 1956) when WDV Of Any Fixed Asset has come below 5% of its original cost.
26 October 2013
It should be fully written off from books of accounts.
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26 October 2013
sir can you refer me the section or schedule which governs this writing off of assets
27 October 2013
Dear Rahul,
There is no need for any reference to any section. Providing for depreciation is mandatory as per law. Once the whole of the value of the asset is depreciated, it is often kept at Re 1 in order just in order to reflect its existence in the asset block.
There is no need for any reference to any section. Providing for depreciation is mandatory as per law. Once the whole of the value of the asset is depreciated, it is often kept at Re 1 in order just in order to reflect its existence in the asset block.
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27 October 2013
in balance sheet if asset is shown at Rs.10000 which is les than 5% of its cost,is it mandatory to write it off or can shown at rs 10000
27 October 2013
you have write off till it reaches Rs 1. There you may stop
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