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Depreciation
Accountancy
Sir if life if a fixed asset is 0. Org cost - 10000 Till date dep charged - 9700 Carrying value - 300 Salvage value - 500(all fig are vague value ) What would be its wdv
Answers (7)
CA Suraj Lakhotia Admin
Generally you will not reduce the fixed asset below its residual value.
If carrying value is higher than salvage value bbut life of the asset is 0, what would be its wdv or book value
Thread Starter
Sajan GangadharanIf carrying value is higher than salvage value bbut life of the asset is 0, what would be its wdv or book value
If its at end of useful life, the carrying value would reach its salvage value. Can you clarify your query please.
Sudha Reddy
If its at end of useful life, the carrying value would reach its salvage value. Can you clarify your query please.
Yes actually carrying value should be equal to its salvage value. But suppose if any year over depreciation is charged, or dep charged wrongly, there will be some diff bw cv and sv. Practically it can happen know if done manually. In such situation which we should take.