Fixed asset remaining life is 2y. but how to write now?

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ramanamma (Querist)
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22 February 2017 Dear professionals,
my employer wants to write off fixed assets in FY 2016-17 but the assets have remaining life 5Years.
what is the procedure, how we can write off?
can we charge that amount to P&L account?
please guide me.
Thank you.

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Roney

Roney (Expert)
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22 February 2017 Let's assume you bought an asset for Rs.10,000, its residual value is zero, useful is 10 years and depreciated on a straight line basis. After 5 years you are selling asset for Rs. 7000. The entry will be like following,
Dr. Accumulated depreciation 5,000
Dr. Cash/Bank 7,000
Cr. Asset 10,000
Cr. Profit on disposal of non current asset 2,000

Hope its clear.