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Depreciation

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(Querist)
02 September 2016 If W.D.V of Furniture remains just Rs 15, can we write it off in P&l A/c? Please explain its treatment with proper entry
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CA SAGAR M. AHUJA

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CA SAGAR M. AHUJA (Expert)
02 September 2016 Yes, You can written off the asset by passing the following entry
P&L account Dr.
To Furniture A/c
(being Asset written off)
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Amol S Joglekar

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Amol S Joglekar (Expert)
02 September 2016 normally, the thumb rule is if WDV reaches a point which is 5% of the initial cost of the asset, then same may be written off, provided the economic life of the asset is over
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CA SAGAR M. AHUJA

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CA SAGAR M. AHUJA (Expert)
02 September 2016 But you also think about materiality as the 15 Rs. amount is not material whether you write off it or not.
Thanks.
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Amol S Joglekar

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Amol S Joglekar (Expert)
02 September 2016 absolutely right..... INR 15 is something......which, I dont know why the same has remained in the books.....

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