There is an asset whose estimated useful life expires in current year and hence has been written down to residual value. What am I supposed to do with that residual value according to provisions of Companies Act, 2013? Is it to be kept as it is or shall it be written off?
Menu
Treatment of residual value of an asset at the end of its life
Replies (4)
Quick Summary
If there is useful life left, no need to account for residual value.
Residual value is 5% of asset cost and should not exceed it.
asset=10000₹ And residual value is five hundred rupees.
this value must be retained in retained earnings when there is no useful remaining life left.
By Retained earnings 500₹
To Fixed Asset account 500₹
Residual value should be written off
That is correct, but tax people have their own version of reducing ret earning. I don’t understand why. It is the same as written off
Should be written off in 5th or 6th year?
Read more at: https://www.caclubindia.com/forum/treatment-of-residual-value-of-an-asset-at-the-end-of-its-life-576686.asp
Recent Topics :
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
- Clarifications for intra day transactions
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
Related Topics :
CAclubindia
