Originally posted by : Jay Prakash Mishra |
![](https://s3.amazonaws.com/caclubindia/cdn/forum/images/open_quote.jpg) |
In 15% block there is a car with Opening Balance of Rs.430451/- and the same was sold in Rs350000/- and a new car is purchase on 18-12-2011 worth Rs.884209/- how to compute depreciation in this case ?
Point to be explianed- 1) Can depreciation can be claimed for Old Car and if not why? |
![](https://s3.amazonaws.com/caclubindia/cdn/forum/images/close_quote.jpg) |
Closing balance=[(430451-350000)+884209]=964660.
Of the above:
Depreciation @ 7.5%(since used for less than 180 days)=884209*7.5%=66315
Depreciation @ 15%=(964660-884209)*15%=12067
Total Depreciation=78382
Closing WDV=964660-78382=886278
Regards,
RA