Write Down

Write Down

Sometimes, the value of an asset decreases significantly with time. In such a case, we need to write down the value of the asset to its current value.
Write down is performed in cases like Asset Depreciation, Damage of Goods, etc.


Let’s say you buy 100 pens. Now, you find that the value of the pens has decreased in the market. The new value of each pen is Rs. 9. In such a case, you would need to write down the value of the pens from Rs. 10 to Rs. 9. The total value of the pens would now be Rs. (90*10) i.e. Rs. 900.

  1. Assets
  2. Depreciation
  3. Write Off

    • Related Articles

    • US Generally Accepted Accounting Principles (US GAAP)

      The generally accepted accounting principles used to prepare the financial statements of companies in the United States.
    • Xero

      Xero is a New Zealand–domiciled public technology company, listed on the Australian Securities Exchange. Xero is a cloud-based accounting software platform for small- and medium-sized businesses.
    • Recurring Journal

      Recurring Journal is an accounting entry which is repeated periodically in some cases. Recurring journals is required for recording transactions like salary, amortization, recurring purchases, recurring sales etc., The same entries with the same ...
    • Reconciliation

      Reconciliation is the process of comparing a bank statement with the bank ledger (chart of account) entries to correct any discrepancy in the book of accounts. All the companies perform reconciliation to ensure that the accounting is in line with the ...
    • Retained Earnings

      All the profits and losses are appropriated at the end of the year. Some of the profits or losses may be carried forward to the next year as Reserve and Surplus to meet contingencies. These are also known as Retained Earnings. Example For example, ...