diff --git a/erpnext/assets/doctype/asset_value_adjustment/asset_value_adjustment.py b/erpnext/assets/doctype/asset_value_adjustment/asset_value_adjustment.py
index 7f5d480538b..1877f173168 100644
--- a/erpnext/assets/doctype/asset_value_adjustment/asset_value_adjustment.py
+++ b/erpnext/assets/doctype/asset_value_adjustment/asset_value_adjustment.py
@@ -192,6 +192,10 @@ class AssetValueAdjustment(Document):
 		if asset.calculate_depreciation:
 			for row in asset.finance_books:
 				if cstr(row.finance_book) == cstr(self.finance_book):
+					salvage_value_adjustment = (
+						self.get_adjusted_salvage_value_amount(row, difference_amount) or 0
+					)
+					row.expected_value_after_useful_life += salvage_value_adjustment
 					row.value_after_depreciation += flt(difference_amount)
 					row.db_update()
 
@@ -208,6 +212,10 @@ class AssetValueAdjustment(Document):
 		asset.save()
 		asset.set_status()
 
+	def get_adjusted_salvage_value_amount(self, row, difference_amount):
+		if row.expected_value_after_useful_life:
+			salvage_value_adjustment = (difference_amount * row.salvage_value_percentage) / 100
+			return flt(salvage_value_adjustment if self.docstatus == 1 else -1 * salvage_value_adjustment)
 
 @frappe.whitelist()
 def get_value_of_accounting_dimensions(asset_name):
diff --git a/erpnext/assets/doctype/asset_value_adjustment/test_asset_value_adjustment.py b/erpnext/assets/doctype/asset_value_adjustment/test_asset_value_adjustment.py
index 82fa3ba17e9..dfde9a7d885 100644
--- a/erpnext/assets/doctype/asset_value_adjustment/test_asset_value_adjustment.py
+++ b/erpnext/assets/doctype/asset_value_adjustment/test_asset_value_adjustment.py
@@ -292,6 +292,43 @@ class TestAssetValueAdjustment(unittest.TestCase):
 		asset_doc.load_from_db()
 		self.assertEqual(asset_doc.value_after_depreciation, 50000.0)
 
+	def test_expected_value_after_useful_life(self):
+		pr = make_purchase_receipt(item_code="Macbook Pro", qty=1, rate=100000.0, location="Test Location")
+
+		asset_name = frappe.db.get_value("Asset", {"purchase_receipt": pr.name}, "name")
+		asset_doc = frappe.get_doc("Asset", asset_name)
+		asset_doc.calculate_depreciation = 1
+		asset_doc.available_for_use_date = "2023-01-15"
+		asset_doc.purchase_date = "2023-01-15"
+
+		asset_doc.append(
+			"finance_books",
+			{
+				"expected_value_after_useful_life": 5000,
+				"salvage_value_percentage": 5,
+				"depreciation_method": "Straight Line",
+				"total_number_of_depreciations": 12,
+				"frequency_of_depreciation": 1,
+				"depreciation_start_date": "2023-01-31",
+			},
+		)
+		asset_doc.submit()
+		self.assertEqual(asset_doc.finance_books[0].expected_value_after_useful_life, 5000.0)
+
+		current_asset_value = get_asset_value_after_depreciation(asset_doc.name)
+		adj_doc = make_asset_value_adjustment(
+			asset=asset_doc.name,
+			current_asset_value=current_asset_value,
+			new_asset_value=40000,
+			date="2023-08-21",
+		)
+		adj_doc.submit()
+		difference_amount = adj_doc.new_asset_value - adj_doc.current_asset_value
+		self.assertEqual(difference_amount, -60000)
+		asset_doc.load_from_db()
+		self.assertEqual(asset_doc.finance_books[0].value_after_depreciation, 40000.0)
+		self.assertEqual(asset_doc.finance_books[0].expected_value_after_useful_life, 2000.0)
+
 
 def make_asset_value_adjustment(**args):
 	args = frappe._dict(args)