Accounting for Fixed Asset

This query is : Resolved

Raghunandana C K (Querist)
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07 February 2011 Dear Sir,

I have one doubt in accounts. This doubt I am asking only academic point of view.

In an enterprise which is following the SLM method of depreciation. The Asset value as per the books has come to zero. But the assets are physically still exists. My doubt is how to account these assets in the books of account.

Thanks in Advance

C.A.Javid Patel

C.A.Javid Patel (Expert)
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07 February 2011 you keepthem in the books by entering re. 1 value

Raghunandana C K

Raghunandana C K (Querist)
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07 February 2011 Dear Sir,

Thanks and what is the entry passed in the bokks of account.

Fixed Assets A/c Dr 1
To ????

Thanks in Advance

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C.A.Javid Patel

C.A.Javid Patel (Expert)
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07 February 2011 To Profit & Loss a/c

Bcause all the dep you have w/o in p& l

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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10 June 2011 CA Javid Patel is right....You are also advised to get valuation of these assets and recognize as per FA valuation accordingly revaluation reserve shall be, because financial statement should show true and fair picture