Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2012 Sir,
I have a Car.
Book Value of this car is Rs.250860 as on 01/04/2012.
I purchased new car for Rs.1043722 on 21/11/2012 & Sold old car for Rs.150000 on 11/12/2012.
Sold value of Old car is including Vat i.e. net sale amount Rs.13333 + vat@12.5% Rs.16667
I am confused about depreciation.
How much Depreciation can take in this case?
How much amount should be credit to car account?

Pankaj Gupta

Pankaj Gupta (Expert)
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25 December 2012 Depreciation is calculated on the book value on the closing date ie 31st march. So on that date depreciation will be calculated on the value derived by this method--
opening book value on 1st apr+ purchases during the year-sale during the year (excluding vat)

Pankaj Gupta

Pankaj Gupta (Expert)
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25 December 2012 I answered the above considering you as a dealer registered in vat who has taken input credit on car purchased. Ask further if its not the case.

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