Depreciation

This query is : Resolved 

23 June 2011 Dear Sir,
We have purchased land and building for Rs.120lakhs in that land costing Rs.100lakhs and building Rs.20lakh, my question is how to calculate depreciation. whether we have to include land cost in calculation of depreciation.

Regards
Panduranga

24 June 2011 Building cost will be depreciated,

24 June 2011 Hi, dep can be provided when there is a limit on useful life of the asset. In case of land, since its life is unlimited, dep can not be provided. Hence depreciate building only.
Regards, CA Shakuntala Chhanagni




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