Bulinding in fixed assets

This query is : Resolved

shamkant (Querist)
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09 October 2012 We have one old building. We now demolish the old building & construct new building in the place of old building. Pls let us know what about the old biliding entry in accounts. Should we show in B/S now or else. pls guide

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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09 October 2012 Once the old building is demolished and WDV value (cost of old building - Accumulated depreciation upto date of demolition) has to be written off in books of accounts by debiting to P&L Account as new building is constructed in place of old one.
Entire cost of old building with accumulated depreciation should be removed from Fixed Assets and the value of new building can be replaced.