Kindly let me know what's the meaning of DELETION of Asset while preparing DEPRECIATION SCHEDULE as per Companies Act 2013
Also whether when the useful life of Asset gets over & Carrying value of such Asset will come under Deletion of Asset ?? or it can be taken to Reserves & Surplus
29 August 2023
Deletion of asset means the asset is removed from the active use. Gross cost and accumulated depreciation of the asset is removed from the asset schedule. The residual value will be charged to p and l account.
29 August 2023
ok sir, So Carrying value of such asset(whose useful life gets over) should be charged to P/L account & NOT come under DELETION of Asset
29 August 2023
No, carrying value of assets whose useful life is over but put to active use continue to be in the asset schedule without charging depreciation. Once the asset is removed from active use it will come under deletion of asset and residual value (5%) charged to p and l.
CAclubindia
