Dilip Khambete (104 Points)
10 October 2022If the value of a fixed asset drops below a
certain limit e.g printer. Has come down to rs 500 after many years of applying depreciation , can it be written off and added to capital or is it necessary to keeep it till value becomes zero.
How should the entry in tally be made for such transaction
Please guide me
Regards
Dilip khambete
CA Rakesh Ishi
(Working at Private Company)
(8417 Points)
Replied 10 October 2022
Fixed Asset loses it value as they get old or wear and tear,etc.
Depreciation charges annually to effect this changes in value of Depreciable Fixed Asset.
During the sale or disposal of Fixed Asset you may write off the entire or remaining book value of the asset.
Disposal of Asset or Asset Write off A/c Dr.
To Fixed Asset A/c
Profit & Loss A/c Dr.
To Disposal of Asset or Asset Write off A/c
Hope this helps
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