DEPRECIATION SCHEDULE OF COMPANIES ACT 2013

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the meaning of asset deletion within depreciation schedules under the Companies Act 2013. Assets are considered 'deleted' when removed from active use, with their gross cost and accumulated depreciation being removed from the schedule. The residual value is then charged to the Profit & Loss account. If an asset's useful life has ended but it remains in active use, it stays on the asset schedule without further depreciation.

M.Ramkumar

M.Ramkumar (Querist)
Follow

29 August 2023 Dear Experts

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

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

M.Ramkumar

M.Ramkumar (Querist)
Follow

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now