Writing off of fixed assets

Hi Friends,

Can somebody answer  ?  The Fixed Assets Schedule of an organisation as on 31st. March, 2011 shows a number of assets at very neglible values (asset schedule maintained on w.d.v. basis) (say values appearing are Rs. 57.48, Rs. 2.60, Rs. 100.50, etc.). The management decides to write off these assets completely for the F.Y. ended on 31st. March, 2012.

What entries are required to be passed in the books of account during the Financial Year 20111 - 2012 and how will it be treated in the P/L a/c and Balance Sheet  for the F.Y. 2011 - 2012 ? Do we have to give it in the notes to the accounts ?

Thanks & regards. 

Replies (5)

Yes the Fixed Assets can be written off in F.Y. 2011-12 to P&L.  the Entry wold be as follows:

Fixed Assets w/o   Dr

To- Asset

The particulars about the write-off of the fixed assets will be requried to be givne in the Notes to Accounts.

Thank you Sir, how shall I close the Fixed Assets W/o A/c ? P/L A/c........Dr.

                                                                                                             To Fixed Assets W/o A/c. ?

fixed Assets w/o a/c Dr To- Fixed Asset

Sir, sorry for asking again: Where do I close the Debit Balance of Fixed Asssets W/O A/c. Shall I charge it to P/L A/c. ?

The Ledger :

                             Fixed Assets W/o. A/c.

Dr.                                             Rs.                                               Rs.                  Cr.

To Fixed Assets A/c. (say)    100        By   (?) P/L A/c          100

Thank you..

Fixed Asset w/o account is an P&L account.  So it should be transferred to P&L.  the entry provided by you above is correct.

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