diff --git a/erpnext/assets/doctype/asset/asset.js b/erpnext/assets/doctype/asset/asset.js
index f414930d72..a43a16c9ec 100644
--- a/erpnext/assets/doctype/asset/asset.js
+++ b/erpnext/assets/doctype/asset/asset.js
@@ -239,8 +239,10 @@ frappe.ui.form.on('Asset', {
 
 
 	item_code: function(frm) {
-		if(frm.doc.item_code) {
+		if(frm.doc.item_code && frm.doc.calculate_depreciation) {
 			frm.trigger('set_finance_book');
+		} else {
+			frm.set_value('finance_books', []);
 		}
 	},
 
@@ -381,6 +383,11 @@ frappe.ui.form.on('Asset', {
 
 	calculate_depreciation: function(frm) {
 		frm.toggle_reqd("finance_books", frm.doc.calculate_depreciation);
+		if (frm.doc.item_code && frm.doc.calculate_depreciation ) {
+			frm.trigger("set_finance_book");
+		} else {
+			frm.set_value("finance_books", []);
+		}
 	},
 
 	gross_purchase_amount: function(frm) {