10 November 2009
IF A PARTNERSHIP FIRM BECOME PROPREITORSHIP CONCERN BY RETIRING THE PARTNERS ON 30/09.THEN HOW WE SHOULD CALCULATE DEPRECIATION? WHETHER ON DAYS BASIS OR NO EFFECT WILL BE GIVEN IN THE BALANCE SHEET ON 30-09. IS THIS RIGHT TO CALCULATE DEPRECIATION FOR HALF YEAR IN THE PROPREITORSHIP CONCERN ON 31-3 BECAUSE AT THE DATE OF PREPRATION OF BALANCE SHEET ALL THE ASSETS ARE IN THE HAND OF PROP. CONCERN & ASSETS ARE INTRODUCED ON 1/10.
11 November 2009
Hi Sumiti, since the proprietory concern came into existence on 30.9., it will provide depreciation for half year only. thanks and regards, CA Shakuntala Chhangani
13 November 2009
thanx but i need some more clarification in this case that--- what will be the effect of depreciation in the partnership firm if we do tax audit in the above case?
CAclubindia
