20 September 2018
What was the accounting treatment for tangible fixed assets written off i.e the life of the asset is completed. How to show in the profit and loss account.
20 September 2018
As per Company Act provisions for Depreciation, you need to maintain 5% of assets value till the disposal or sale of assets. After completion of assets useful life you need to maintain 5% value of assets in balance sheet. For example If you Purchased Furniture & Fixtures on 01/07/2007 at Rs. 100000/-. Useful life of Furniture & Fixture is 10 years. You need to maintain 5% of cost i.e 5000 till you use the assets. No depreciation charged on 5% amount.
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