Hi Experts,
I had a doubt regarding asset retirement,
Case 1: I capitalised an Asset in the current year say 10th April, 2008 and retired the same today, then in the accounting entry depreciation account is not coming for the 5 months that has been used after capitalising.
Case 2: But if for a prior year asset if I am retiring today then depreciation is posted to the depreciation account.
Can anybody let me know the logic behind it?
regards
srikanth.