Written of Assets and Liabilities

Is there any Resolution for Written off Assets and Liabilities.Is law permits for written off.If yes please tell me under which sec it specifies about.If there any consequences from central goverment for removal of Assets and Liabilities suddenly
from the Balance sheet.
Replies (6)
You are writing off/back the assets or liabilities for what reason?

Either you considered such assets as scrap or liabilities are not going to pay?

Only management approval required the same, in writing. For the purpose of future reference against the same.

And assets value should be maintained @ 5%, until it will be disposed off.

So go ahead with clarity please.
Only in Books of accounts Assets WDV is there but physically not because the company has vacated leased property suddenly without expiry of lease period,so the owner of the leased property took over the property along with Assets due to some issues between Company and the Landlord.So,this is the reason for Written of Assets.

Now in this case shall we have to maintain 5% of Assets value.
You can show it as sell off to the landlord at WDV, So that your liability write off will be reduced accordingly from the same
And for Liabilities like Provision for taxation,Payable to Related Parties,Provision for taxation and Statutory remittances(ESI,PF)management is trying to written off from the Balance sheet, as they were assuming that those Liabilities are actually not payable.

Shall we agree for the same with them?

Any Board resolution and Management representations is required for the same.
How they will write off the same, Provision when created check the reasons for revise the same. Or whether the same is already paid and adjusted.

Statutory remittances? Didn't get.
Payable to the related parties for which reason :like salary, rent?
Thank you for all the replies.

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