depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 a machine purchased on 07-08 for Rs. 80,000 was brought into use on 31-10-08 after installation at a cost of Rs. 10,000.
the assesses accounting period for the relevant business is the financial year. on 30-06-09 the machine was destroyed by
fire and the scrap was sold for Rs. 500, the fire insurance people paying a further sum of Rs. 54,500. the rate of depreciation is 15%
for A.Y. 09-10 and 10-11. this machinery was only item of this block. calculate the WDV on 1-04-09 and the claim which assesses can make
for the A.Y. 10-11

PLEASE SOLVE THIS QUESTION

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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22 February 2011 Hi

Will get back to u with complete wrkngs & Info

Thank you

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITR Hons

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)
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23 February 2011 1]WDV on 01/04/09 will be Rs.83250/- [90000-(90000*15%/2)=90000-6750=83250] 2]The assessee can make Loss by fire claim showing seperate item in P&l of Rs.28250/- (83250-500-54500=28250/-)

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Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2011 hello Mr. BADAMIKAR

why the half depreciation is provided in 08-09 however it was purchased in 07-08. and what about additional depreciation..

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)
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23 February 2011 As per details given, the machine was put to use on 31/10/08, therefore depreciation can be claimed only after put to use. And you have specifically mentioned that the rate applicable to block is 15%. Therefore 15% rate considered.