Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2010 Dear Sir/ Madum

Below query is most imp for me please solve the query

Que : Glass, cuutlery etc: Balance on 01.01.2004 is Rs. 28000. Glass, cutlery, etc purchased during the year Rs. 16000. Depreciation is to be charged on the above assets as follows - 1/5 of the thier values is to be written off in the year of purchase and 2/5th in ach f the next 2 year. of the stock of glass cutlery, etc as on 01.01.2004, 1/2 was one year old and 1/5 was 2 years old. purcahse are made on 1st january.

Depreciation for 3rd Year
Ans 24200

Closing balance in glass cutlery A/c
Ans.19800

please calculate the abouve questions ans

Srinivas Rao

Srinivas Rao (Expert)
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06 September 2010 question needs to be corrected and the part to be corrected is
As on 1.1.2004 1/2 one year old and 1/5 was 2years old. what about remaining 3/10?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 September 2010 Depreciation
Opening balance 28000
1/2 value 14000 7000
1/5 value 5600 5600 5600
Remaing value 8400 8400 8400
Current purchase 16000 3200
Total Deprecition 24200

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Srinivas Rao

Srinivas Rao (Expert)
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11 September 2010 I cannot agree with CMA Ramesh.
The life of the asset is 3 years. So opening balance will include only assets of 2 year back and 1 year back only.By 3rd year end the value is zero. So bal. as on 1.1.04: Assets purchased in 2002 and 2003 only.