Many Fixed Assets are carring Value is showing Residual value for last 2 years.Now no amount can be get from that FA.that one is totally useless.Now we want to close that balance from books.Can I pass Following Entry.
Fixed asset witten off A/c DR XX(residual value)
Accumalated Depreciation A/c DR XXX
TO Fixed Assets A/c XXXX
If you have not received any cash aginst it then, write off the remaining amount (Undepreciated) as Loss. JV is as follow:
Loss amt Dr.20
Acc. Dep amt Dr.80
to Fixed Asset Cr, 100
you situation is retirement of asset. so your entry is correct Mr.VIGNESH.
WE NEED TO RECOGNISE AT NET REALISABLE VALUE.
CAclubindia
