05 May 2014
In case of a company engaged in manufacturing of industrial gases, if the production activity is carried on in the first two month in the financial year 13-14 and after that the plant is closed and no sale & purchase and manufacturing has been taken place. does the depreciation has to be charged for full year or only for two month in which the plant was in operation?
13 May 2014
depreciation must be charged for whole period, yes there may be diff in rate of depreciation in plant and machinery due to plant not running.
CAclubindia
