Depreciation

This query is : Resolved 

20 March 2012 Can anyone suggest me the action for the following situation:

Asset put to use: 1st March, 2011
Put to use certificate received on: 30th April, 2011.
Accounts Department capitalises the assets based on Put to use certifcate.
The books for year ended are closed on 31st March, 2011 and back dated entries are not allowed. Action in April, 2011

Kindly provided me with your suggestion alongwith the applicable Sections as per Companies Act and Accounting Standards.

Thank you in advance

05 April 2012 Hello all can anyone please help me solve my query?

05 April 2012 Account department is incorrect. Assets should be capitalised, when it is actually put to use not from the date when company received the certificate of put to use.
comapany did not provided depreciation for one month( from 1 march to 31st March 2011.. so here AS -5 applicable ... for one month deprecation should be provided on books of account as prior period item ok............


14 April 2012 Thank you very much. Hope this helps...



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