(2) be replaced. In such a value,

(2) Replacement Value: It is a price at which a particular asset can be replaced.

In such a value, the expenses, e.g., commission, freight, etc., are also included. (3) Market Value: If an asset has a market for it, a value which it will bring when sold in the market is termed as Market Value. (4) Bolo Value: It is a value at which an asset appears in the books of Accounts. It is usually the cost less depreciation written off so far.

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(5) Realizable Value: A value which will be realized in the market and received from the sale of an asset is known as its Realizable Value. Usually, expenses such as commission, brokerage, etc., are deducted from it. The realizable value is normally used in the valuation of existing assets. (6) Break-up Value and Scrap Value: A value which may be obtained from the asset if it is sold as scrap and unserviceable is Break-up value. (7) Going-concern Value or Value of the Business as a Going Concern: This is also known as Conventional or Token or Historical Value.

It is equivalent to the cost less a reasonable amount of depreciation written off. How far the valuation of a particular asset is correctly made is a question which will depend upon its nature, size and use. However, the following points have to be considered in the valuation of assets: (i) The Original Cost; (ii) The probable working life, i.e., the lifetime for which an asset will remain in proper working order; (iii) Its Wear and Tear; (iv) Its Break-up Value; and (v) The chances of its being Obsolete.


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