Fixed assets and its depreciation
This query is : Resolved
24 June 2014
I have some trucks as fixed assets.its overall price is 3,00,00,000. it has a depreciation of 20%. also i repaired some trucks and its value got appreciated.
so how can i account.
Now i create asset account under fixed asset for each asset and put current price as opening balance. and then it is capitalised. is this the correct way?
so how can i account.
Now i create asset account under fixed asset for each asset and put current price as opening balance. and then it is capitalised. is this the correct way?
24 June 2014
Follow the following rule of depreciation
1. Repair & maintenance which will add life or capacity- capitalized. (add to the value of trucks)
2. other repair & maintenance- write off as expenses
1. Repair & maintenance which will add life or capacity- capitalized. (add to the value of trucks)
2. other repair & maintenance- write off as expenses
24 June 2014
you can expenses off the repair exp. of truck . capitalized when its increase its useful life otherwise not required.
you can take last year closing vale as op bal. + addition - sale of truck- depreciation on truck = closing value of truck.
you can take last year closing vale as op bal. + addition - sale of truck- depreciation on truck = closing value of truck.
24 June 2014
truck op bl. =15000
addition=25000
now the truck market value is = 75000
deprecitatio is 20%
no sale of truck happened.
addition=25000
now the truck market value is = 75000
deprecitatio is 20%
no sale of truck happened.
25 June 2014
charge depreciation for 40000 at full rate if addition is made before 30/09.
in other case charge full rate for 15000 and half rate for 25000
ignore market value
in other case charge full rate for 15000 and half rate for 25000
ignore market value
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