15 December 2009
Mr.X Purchased a Shop in the Multi- Stored Marketing Complex for Rs.10 lakhs, after that he constructed a Show Room in that shop and started a Proprietorship Business. The construction cost of the show room is Rs. 12 lakhs. Please determine the amount of depreciation (rate of depreciation :10%).
15 December 2009
Sir, but i think,the cost of Shop Rs.10 lack should not consider for depreciation.Because day by day the value of shop is increasing, how can it's value depreciate ? Only cost of construction of Show Room consider for depreciation i.e. 10% of 12 lakhs = 1.2 lakhs. (i am not sure but it is my view). Thanks.
CAclubindia
