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Can we provide depreciation on dead stock

Joe 13 (CA Job) (56 Points)

27 May 2008

Can we provide depreciation on dead stock?

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9 Replies

manjula (Articles Asst) (641 Points)
Replied 27 May 2008

AS per AS 7 dead stock is notin to do for business income

dep should be provided only on those assets which are used for business and even on those asstes which have kept without using for business (non dead assets)

but dead stock is nothing but which have lost its value in market so write off against P/L

please correct me frds if i am wrong.

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CA Uttam (Chartered Accountant) (406 Points)
Replied 27 May 2008

I think depreciation should not be charged on dead stock rather it should be written off in books.

Azmathullah Khan (Accounts Manager) (1386 Points)
Replied 27 May 2008

the rate of depreciation must be 100%, i.e., u have to depreciate the dead stock 100%.

Mr. Uttam & MsManjula is right.

yogeshwar (chartered accountant) (137 Points)
Replied 30 May 2008

is dead stock a fixed assets ? if not , what is the question of depreciation

Murlee (Professional) (204 Points)
Replied 30 May 2008

Dear Azmathullah.........., we may call it "100% write off" rather then "100% depreciation", because stock has nothing to do with depreciation.

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Murlee (Professional) (204 Points)
Replied 30 May 2008

sagar chothani (student) (29 Points)
Replied 18 July 2012

i think it should be written off because we consider it as a stock which is a current asset and there is no deprediation on current asset hence it should be written off........

Mohammedaslam (Student CA IPC / IPCC) (21 Points)
Replied 20 June 2016

dead stock is an assets and accordigly it should be charged depriciation @ 10 % It may be a one types of furniture & fittings so we can charged deprication on them