One of our Clients’ is using Straight Line Method of Depreciation as per Companies Law. This is the second year of their business. They have debited a portion of the asset with a certain sum of money and we are treating it as deletion. Now, how should we calculate depreciation for the deleted asset under SLM ?
17 February 2009
If assets is sold / descarded then only one can debit the assets account with accumulated depreciation and with sale price. Differece to be treated as profit / Loss.
However one has to calculated depreciation up to date of asset sold / descarded for the said financial year.
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