22 August 2008
Purchase a computer on credit for rs. 1 lac on 1/4/2006 and charge full depreciation @ 40% in 2006-07. In April 2007 we got a Rs. 20000 discount. Now should we written back the depreciation in current year on Rs. 20000 which hadbeen charged in last year?
27 August 2008
Yes, the depreciation should be recalculated after adjusting the discount of Rs 20000 against the Gross cost of the computer and the depreciation difference be written back to the Profit and Loss account.
CAclubindia
