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Former Member
Sep 01, 2008 at 04:30 AM

Asset Retirement

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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.