09 June 2015
we acquired plant & Machinery in 1995-96 for Rs.23,58,908, which we are still using currently in our business. The WDV of which as on 31.03.2014 is Rs 1,29,988. According to Schedule II the life of Asset is 15 yrs. which is expired. It is given in the amendment dated 29.08.2014 by MCA that Residual Value may be recognized in profit and loss account or not.As my useful life of asset is complete, how do I account depreciation Now??
09 June 2015
Residual value is 5% of cost which comes to Rs. 1,17,995. WDV is Rs.1,29,988. Their difference is Rs. 11,993 which may be recognised in the opening balance of retained earnings since life of the asset is expired. No need to account depreciation in FY 2014-15 in view of the above observation.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 June 2015
sir how do i transfer Rs 11,993 from fixed asset account(Dr) to retained earnings(Cr)