Depreciation

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Mohamed Abdul Razak (Querist)
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20 May 2015 One of my friend went for the interview. In the interview, the interviewer asked him one question. The Question was like this.

A Company is using an asset which has been depreciated for full year and its book value has become zero, but the asset is still in usable condition, the company wants to continue to use the assets instead of writing off. So how to make use of the asset for the next financial year.

So anybody can please tell me the answer?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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28 May 2015 To use the asset it is not necessary that it must appear in the balance sheet. The company can use the asset as long as it is working. The question of charging depreciation does not arise as there is no book value.

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