Depriciation as per companies act

This query is : Resolved

Vasudev Israni (Querist)
Follow

17 September 2012 Can Any one tell me that if....

An Asset is sold in the mid of the year then whether depriciation will be allowed on such asset for such period or not..???

As as per companies act depriciation is allowed on day basis...

CA Navin Jain

CA Navin Jain (Expert)
Follow

17 September 2012 yes as per companies act dep will be allowed till the date of sold to fixed assets.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
Follow

17 September 2012 Yes I agree with the reply of CA. Navin Jain Depreciation as per Companies Act is calculated on Day Basis. If the Asset is sold in the mid of the year then Depreciation has to be calculated till the date of Sale on day basis

Upgrade to CAclubindia Pro. Subscribe Now!