IF WE HAD TRANSFERED FIXED ASSETS FROM ONE BRANCH TO ANOTHER BRANCH IN FINANCIAL YEAR 2012-13 (SUPPOSE IN THE MONTH OF FEBRUARY 2013) THEN HOW TO PUT DEPRECIATION ON THAT ASSETS IN BOTH BRANCHES ?
26 June 2013
paras sir thank you very much but can u please let me explain more clearly suppose building of 1000000 rs has been transfered from head office to delhi office on june 23,2013 then how would u calculate the depreciation in the books of both ?
26 June 2013
Total No of Days in a year =365. Building used by HO for 30+31+23=84 days .
Let the rate of depreciation be @ 10%. Annual Depreciation =100000 . Dep Allocable to HO =84/365x100000 = 23014 . Balance allocable to Delhi Branch = 76986. .
CAclubindia
