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Asset Fully Depreciated but it is still useful,
Accountancy
Sir, An asset which is fully depreciated in the books ,but it can be used still in the business. In such a case ,do we have to to show again this asset in our books, if so what should be the entry to bring asset again into our books of accounts. . For Example an asset of Rs10000 (use full life is 5 years) yearly depreciation is Rs.2000.00. By the end of 5th year that asset will not be in our books. But it can be used for 3 more years. So how to show this in our books. Please guide me sir.
Answers (5)
Naresh Sundar
In that case, revaluation of assets will be done
Suppose, asset is revalued for Rs.3000.00 and can be used for 3 years. What entery is to be passed here ? Should we give depression in this 3 year. ? Please guide me sir .
CA Suraj Lakhotia Admin
If the entity follows cost model - it will be carried at 0 value. If revaluation model is followed, it will be revalued as per AS 10/ Ind AS 16.
Sir, What is cost model ? IS there any video lecture about cost model ?
Thread Starter
Thankachan JimmySir, What is cost model ? IS there any video lecture about cost model ?
Under cost model (an accounting method) the asset is carried at its cost less accumulated depreciation
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