Depreciation

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Rajpreet Singh (Querist)
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28 March 2009 Dear Sir,
A newly incorporated company acquired the entire business of a partnership firm. My question is what would be the Original cost of fixed assets in the hands of company for the purpose of charging straight line method of depreciation. What Original cost is to be stated in the Fixed Assets Register required to be maintained under the Companies Act' 1956. A have confusion about the actual cost. Is it that cost at which asset was acquired by the firm or simply the cost at which it is acquired by the company. Previously firm was charging depreciation as per Income Tax Act rates. Company acquired the fixed assets at book value ie WDV.
Please advice
Regards
CA Rajpreet Singh
+9915135627

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Guest (Expert)

29 March 2009 It will be the actual cost paid....i.e WDV of the Firm in your case.

>>Vipul Garg

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