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that when an asset totally depreciated and still having it how can i treat it and show it? and if i sold it after been totally depreciated the amount will be gain?
Yes it is.
When an Asset becomes fully depreciated at any time it does not means that the benefit of that asset can no longer be achieved. They why we have to show it in the balance sheet until we dispose it.
If we make it zero it will no longer be shown in our financial statements and cannot be track down and cannot be secured.
An asset that is fully depreciated and continues to be used in the business will be reported on the balance sheet at its cost along with its accumulated depreciation. There will be no depreciation expense recorded after the asset is fully depreciated. No entry is required until the asset is disposed of through retirement, sale, salvage, etc.
To illustrate this, let’s assume that a machine with a cost of $100,000 was expected to have a useful life of five years and no salvage value. The company depreciated the asset at the rate of $20,000 per year for five years. If the machine is used for three more years, the depreciation expense will be $0 in each of those three years. During those three years, the balance sheet will report its cost of $100,000 and its accumulated depreciation of $100,000 for a book value of $0.
Source: http://blog.accountingcoach.com/fully-depreciated-assets/
IF THE ASSET IS FULLY DEPRECIATED AND IS STILL IN USE FOR BUSINESS THEN ITS VALUE WILL BE1 CURRENCY AS TO SHOW THAT IT PHYSICALLY EXIST BECAUSE IF ITS VALUE IS NIL THEM BALANCE SHEET WILL NOT REFLET THE ASSET.
Yes, whebn the asset is fully depreciated it is registered in the books at1 currency unit for tracking and inventory, and when it is sold it is gain from disposal from Fixed assets.
When an asset is depreciated totally, we are giving value1 to that asset to show or indicate that such an asset is physically existing in your books, though it is fully depreciated. this will help you to physically track the asset and avoid misuse or misappropriation.
If you sold an asset fully depreciated, whatever sales proceed you get will be your Capital Gains clubbed to other income in Balance Sheet.
When an assets is fully depreciated, the asset does not have monetry value and no depreciation shall be charged on such asset. But such asset become the part of "Assets at Nil values". Oracle and other advanced ERP system keep record of such assets.
نعم الأصل الثابت أي أصبح مهلك دفترياً بالكامل ومازال يعمل يتم اعادة تقييم الأصل من جديد وتعتبر القيمة الجديدة للاصل كأرباح لاعادة التقييم للاصول ولكن لا يتم توزيعها علي الشركاء. اذا تم اهلاك الاصل واصبحت قيمته واحد صحيحا للاحتفاظ برمزيته فهذا يعني انه تم التخلص من الاصل تماما دفتريا وليس له اثرا للاهمية النسبية له
Even after an asset is depeciated fully,it has usable value.For control purpose of existence of a usable asset ,It is retained in books at a value of Re1.
As fully depreciated, Sles minus depreciated value (i.e. Re1 will be its gain.
The Value of the asset will be1 currency unit @ which the asset was purchased when it is fully depriated to its useful life until it is solded or disposed it be shown in to balance sheet along with accumulated depreciation. If it is sold after fully depreciated there will be gain to the organisation.
As Rahul explained above, keeping one unit for each asset was age old manual system of maintaining fixed assets; to ensure all fixed assets were in physical possesstion despite zero book value.
After computer systems, it is not required to have such system as we could produce the list of all fixed assets with zero balance and held physically with the company
