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Generally asset value is reduced by current year depreciation in this why closing balance of the accumulated depreciation is reduced to asset value. Why? Explain the concept of basis

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Kanaga Mani

Kanaga Mani

CA Inter

1K+

03-Apr-21 20:06

73

Answers (1)

If we reduce just the current year depreciation. Then depreciation on the disposed asset will not be accounted for. Also, alternatively you can show clsoing balance of accumulated depreciation separately in the balance sheet


ruchi lahoti

ruchi lahoti

Moderator

05-Apr-21 10:46