ACCOUNTING FOR FIXED ASSETS

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YUSUF (Querist)
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23 September 2010 HOW TO PROVIDE DEPRECIATION IN CASE OF FIXED ASSETS WHICH ARE INDIVIDUALLY HAVING VALUE LESSER THAN RS.5000/-.

EG I PURCHASED 7 FANS HAVING RATE OF RS.1200/- PER FAN BUT TOTALING TO RS. 8400/-. WHETHER 100 % DEPRECIATION IS TO BE PROVIDED AS PER COMPANIES ACT.

CA Navin Jain

CA Navin Jain (Expert)
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23 September 2010 yes you can claim 100% depreciation .

Entry will be as

fan (fixed assets) -dr
to bank

and

depreciation - dr
to fan or depreciation reserve a/c

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YUSUF

YUSUF (Querist)
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23 September 2010 AND HOW TO ACCOUNT AS PER INCOME TAX ACT WHETHER FULL DEPRECIATION OR BLOCK %AGE.

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CA Navin Jain

CA Navin Jain (Expert)
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23 September 2010 ON THE BLOCK

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