1. Asset Decapitalization: Asset was created as Auc in 2004 & and it has been capitalized with excess amount and depreciated for 4 years. Now the excess amount has to be decapitalized. (Eg: asset has been capitalized with 1, 00,000 in 2004 but the actual value is 90,000 only. Now the excess amount of 10,000 is to be decapitalised)
- Past financial years has already closed
- For the difference amount 10,000 they have passed a liability entry from vendor. (Vendor is liable)
-For capitalizing they r using AIAB, AIBU T.codes
a. changes should be done in current period with effect from value/ capitalized date.
b. The asset value should go down to 90,000
c. The depreciation postings will have to be reversed to till now on 1, 00,000 and pass fresh dep on 90,000
d. The future depreciation has to be calculated on new asset value.i.e 90,000
what is the procedure i need to follow to resolve.....
appriciate early reply.............