illustration 7

Accountancy

why do we subtract the salvage value even when its not given as a seperate deduction in the notes [Video Time Stamp: 06:30] Video Details ------------- P1 - Accounting Standards - CA Inter AS 10 - PPE #8. Illustration - Calculation of Cost

Rithu V

CA Inter

★ 4K+

13-Oct-25 20:31

150

Answers (3)

Best Answer

Thread Starter

Rithu V

So if in any question the value of scrap realized is given it should be subtracted from cost of ppe?

Yes. Similar treatment like income from testing.

CA Suraj Lakhotia

Admin

13-Oct-25 22:27

The question mentions that 63 lakhs was realised from material salvaged. Means we earned that amount from sale of scrap material. This will be reduced from cost.

CA Suraj Lakhotia

Admin

13-Oct-25 22:18

So if in any question the value of scrap realized is given it should be subtracted from cost of ppe?

Thread Starter

Rithu V

CA Inter

★ 4K+

13-Oct-25 22:23