Residual value refers to the estimated worth of an asset at the end of its useful life, while book value refers to the value of an asset as it appears on a company's balance sheet. Both residual value and book value are important measures of an asset's worth, but they are calculated differently and serve different purposes.

The difference between the debit you originally posted to the asset category and the accumulated depreciation is the book value of the asset. Do not confuse the book value with the residual value. The two will not be the same.

At the end of its useful life, the net between the asset’s original acquisition cost and its accumulated depreciation will equal the residual value. The residual value does not appear as a specific line on the company balance sheet for investors to view, but the company will track the book value of its assets on a depreciation schedule.

The main difference between these two concepts is that the salvage value is the total estimated amount of cash receivables for an asset at the end of its useful life while the book value indicates cost minus the accumulated depreciation.