30 May 2012
Suppose a trusts purchased a fixed asset say for Rs. 5,00,000, depreciation would be charged @ 10%. Now which amount is a application of income Rs. 5,00,000 (fixed asset cost) or Rs. 50,000 (depreciation amount)
12 September 2012
Sir again a query has raised on this topic. How it will be treated and what entry will have to be pass in the books of accounts because either we classify asset under the group head “Fixed Assets” or under “Indirect expenditure” I have suggested the following entries. Please tell me whether it is correct, if not, please suggest the entries. 1. Fixed Assets Dr. 5,00,000 (classified under head Expenditure and claim exemption u/s 11) To Bank 5,00,000
2. Fixed Assets Dr. 5,00,000 (classified under head Fixed Assets and claim exemption u/s 11 as depreciation over it useful life)
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