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Calculation of WDV value by single formula in EXcel

MANISH KUMAR (MANAGER- AUDIT) (24 Points)

07 April 2011

"I am facing problem in Calculation WDV method by a single formula in Excel. I also want to know if an asset ( Furniture and fxiture) is purchased on 1-08-1992 for Rs. 10 crore, which depreciated @ 18.10%. How to know its WDV as on 31.03.2011. As per my calculation, Rs. 10 crore multiplied by (100-98.16) = Rs. 18, 43, 648.12.

(**98.16 is multiplying factor of 18.10% after 20 years) Is my interpretaion is correct. Need early reply as to finish audit ASAP.

Whether in WVD method daywise calculation required if an asset is purchased in any time mid of year (As we do in SLM Basis). If yes, then how to calculate WDV in EXCEL

Regards

Manish Kumar

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13 Replies

manzoor ahmed (Auditor) (479 Points)
Replied 10 April 2011

Dear Manish,

you have provided not enough info like depreciation method, straight line or reducing balance mehtod etc, and depreciation is charged on monthly basis or yearly etc.
but I have calculated in an excell sheet on the yearly basis and attaching the file here it might be helpful to you, furtheremore if you need any help and any audit working papers and books you can download it from my personal website its all free..

https://auditworkingpapers.weebly.com/

https://auditworkingpapers.weebly.com/uploads/3/0/5/2/3052525/depreciation.xlsx

Cost		100,000,000
Purchase date		1-Aug-92


Y ear	Rate of Depp.	Deppreciation	WDV
1992	18.10%	18,100,000	81,900,000
1993	18.10%	14,823,900	67,076,100
1994	18.10%	12,140,774	54,935,326
1995	18.10%	9,943,294	44,992,032
1996	18.10%	8,143,558	36,848,474
1997	18.10%	6,669,574	30,178,900
1998	18.10%	5,462,381	24,716,519
1999	18.10%	4,473,690	20,242,829
2000	18.10%	3,663,952	16,578,877
2001	18.10%	3,000,777	13,578,100
2002	18.10%	2,457,636	11,120,464
2003	18.10%	2,012,804	9,107,660
2004	18.10%	1,648,487	7,459,174
2005	18.10%	1,350,110	6,109,063
2006	18.10%	1,105,740	5,003,323
2007	18.10%	905,601	4,097,721
2008	18.10%	741,688	3,356,034
2009	18.10%	607,442	2,748,592
2010	18.10%	497,495	2,251,097
2011	18.10%	407,448	1,843,648

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Ravi Sharma (15 Points)
Replied 17 August 2012

Formula is :

WDV as on Date = Cost price x (1- Dep Rate%) ^ (Date of WDV Calculation - Date of Purchase + 1)/365

I hope this will help.

Nagesh (Asst.Manager) (23 Points)
Replied 12 December 2013

Dear Sir,

i have one more doubt that Depreciation is calculated on Gross block or WDV value on Previous year.

dhawalguitar (student) (98 Points)
Replied 01 June 2014

How to calculate Rate of Depreciation under WDV Method: R= (1 - ( s/c ) ^1/n)x 100 Where R = Rate of Depreciation (in %), n = Useful life of the asset (in years) s = Scrap value at the end of useful life of the asset c= Cost of the asset

Dharmender (Article) (42 Points)
Replied 04 February 2015

hey plz solve this problem

remaining life = 1 year and 215 days

cost=2800

carrying cost=524

scrap=140

what shall be the rate of depreciation under wdv method

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Tej Maheshwari (New Delhi) (24 Points)
Replied 15 June 2016

have you got correct answer of this question??

VIVEK (CA) (78 Points)
Replied 30 August 2016

= ((1)- (salvage value/ WDV as on 31.03.2014)^(1/ remaining period of useful life))*100

Prashant Panchal (Engagement Auditor) (22 Points)
Replied 14 December 2016

use DB function, it gives same result....

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 29 April 2017


		MONTHS
REMAINING LIFE	19.16666667	7.166666667	215 DAYS
COST	2800
SCRAP	140

STEP 1	0.05
STEP 2	0.855303352
STEP 3	-0.14469665
STEP 4	14.46966479

Haritha (CA Articles) (66 Points)
Replied 27 July 2017

Can you please give the formula more precisely.Because I tried the same but i couldnt get the correct WDV value

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 27 July 2017

ATTACHED FILE WILL HELP YOU

THANKS !!

Attached File : 1727343 20170727164442 dep.xlsx downloaded: 1312 times

Kalyan Chakravarthi (2 Points)
Replied 29 January 2018

Thanks........

Sunil Sharma (Tax Consultant) (44 Points)
Replied 29 January 2019

	WDV Formula as per Company Act. 2013
Original Cost	Useful Life Days	Scrap Value	Useful Life Year	Rate of Dep.	Dep. Amt. This Year	WDV Value
100000	=365*5	10000	=+C5/365	=(((1)-(D5/B5)^(1/E5))*100)	=B5*F5%	=B5-G5