22 February 2011
From the particulars given below calculate the amount of depreciation for the p.y. ending on 31-3-2010. P&m 15% block. 1. WDV as on 1-4-2009 Rs. 17,00,000. 2. actual cost of new P&M acquired on 30-09-2008 but put into use on 1-11-2008 Rs. 12,00,000. the depreciation @ 15% for this asset was calculated and charged to P&L account of 08-09 but its WDV its not included in the above WDV. 3. actual cost of new P&m acquired on 31-3-09 but put to use on 06-10-09 Rs. 16,00,000. 4. an asset which was earlier used for scientific research has been transferred to this block on 1-11-09. its actual cost in 04-05 was Rs. 24,00,000 and till 31-3-09 Rs. 12,50,000 has been debited to p&l account. the balance is being carried forward
21 July 2024
To calculate the depreciation for the previous year ending on 31-3-2010, let's go through the particulars provided:
1. **Opening WDV as on 1-4-2009:** Rs. 17,00,000 - This is the written down value of the Plant & Machinery (P&M) block at the beginning of the year.
2. **Actual cost of new P&M acquired on 30-09-2008 but put into use on 1-11-2008:** Rs. 12,00,000 - The depreciation for this asset was already charged for the previous year (08-09) and is not included in the opening WDV of 17,00,000.
3. **Actual cost of new P&M acquired on 31-3-09 but put to use on 06-10-09:** Rs. 16,00,000 - This asset was acquired during the year and has to be added to the block.
4. **Asset transferred to the block on 1-11-09, earlier used for scientific research:** - Actual cost up to 31-3-09: Rs. 12,50,000 - Balance to be added to the block: Rs. 24,00,000 - Rs. 12,50,000 = Rs. 11,50,000
Now, let's calculate the depreciation step by step:
### Step 1: Calculate the Opening WDV - Opening WDV as on 1-4-2009: Rs. 17,00,000
### Step 2: Add the new assets acquired during the year - New asset acquired on 31-3-09: Rs. 16,00,000 - Therefore, new additions to the block = Rs. 16,00,000
### Step 3: Add the balance of the transferred asset - Balance transferred to the block from scientific research: Rs. 11,50,000
### Total WDV for the year (including new additions and transfers): - Total WDV = Opening WDV + New additions + Transferred balance - Total WDV = Rs. 17,00,000 + Rs. 16,00,000 + Rs. 11,50,000 - Total WDV = Rs. 44,50,000
### Step 4: Calculate Depreciation - Depreciation is charged on the block at 15%.
### Annual Depreciation Calculation: - Depreciation for the year = Total WDV * Rate of Depreciation - Depreciation for the year = Rs. 44,50,000 * 15% - Depreciation for the year = Rs. 6,67,500
### Conclusion: - The depreciation for the previous year ending on 31-3-2010, based on the given particulars, is **Rs. 6,67,500**.
This calculation considers the opening WDV, new additions during the year, and the balance transferred from a different block, all of which contribute to the total block value on which depreciation is charged at 15%.
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