03 October 2009
Dear Sirs, Hope You all are fine there
I would like to know that If a Computer & Peripherals Sales Business (Proprietership Business) has assets of Furniture,Moterbike,Computer,Printer,Scanner etc. How much Depriciation They have to Charge on Particular Assets ? & Also I want to know Would they have to Create Depriciation fund on Balance sheet or not ? If yes Show me the Entry or if No Pls tell why ? Thanks in advance
05 October 2009
yes of course depreciation to be charged if the assets you mentioned are used for the business purpose, i.e., to generate income. How much depreciation would depend on the type of asset. You can refer the depreciation rates as per Companies Act and Income tax Act (preferable)for guidance.
CAclubindia
