18 October 2007
SIR/MAM, MY QUERY IS RELATED TO DEPRECIATION MY QUERY IS IF LAST YEAR/YEARS DEPRECIATION WAS NOT CHARGED ACCORDING TO THE RATE GIVEN IN ACT THAN HOW IT SHOULD BE RECTIFIED IN CURRENT YEAR. EG FURNITURE AND FIXTRE IS CHARGED @ 10% BUT LAST YEAR IT HAS BEEN CHARGED @ 15% THAN HOW IT CAN BE RECTIFIED IN CURRENT YEAR. EITHER IT CAN BE DIRECTLY RECTIFIED IN CURRENT YEAR BY CHANGEING RATE OF DEP. OR THEIR SHOULD BE SOME OTHER ADJUSTMENTS. PLEASE SOLVE MY PROBLEM AND OBLIGE. THANK YOU
19 October 2007
You should pass a rectification entry in the current year for the short/excess deprectiation .It will be a prior period item in the P/L . Then in the current year calculate correct depreciation on the corrected WDV .
In the meantime you may revise last year return , if it was submitted within due date and last date for revision has not expired .
CAclubindia
