Accounting Standard 6 Depreciation

This query is : Resolved

Pawan Patil (Querist)
Follow

28 June 2008

Dear Sir,

With referce to above subject,ABC Company
purchased Machinery for Rs. 380000.00 & it's useful life is 12 Years & at the time of purchase Scrap Value is 20000.00. Company Charge Streightline Depreciation method.

After two years its scrap value is increase by 30000.00

I want know about Historical cost change or not

Advice me for same

Your immediate respose will highly appreicated

With best regards,

VILAS CHOUDHARI

CA Anand Sarda

CA Anand Sarda (Expert)
Follow

29 June 2008 after 2 years the value of the asset is shown as 300000. then at that time ur scrap will be increased by 30000 that means depreciation should be calculated on (300000-30000) for the remaining life of the asset that is 10 years.

Online classes for CA CS CMA