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Depreciation

Sahil (NA) (159 Points)

28 January 2016

Hi can anyone tell me what depreciation i have to follow in tally in Pvt Company books?? Because i have used income tax rates in tally but ca has used depreciation rate in his balance sheet. Now my question is that how can I match the tally books with CA's balance sheet???

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3 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 28 January 2016

You need to follow depreciation rates as per Companies Act for the purpose of book keeping. Fixed asset register in tally should match with FA schedule of the financials. For the purpose of income tax, you can separately maintain FAR in some other manner (like Excel sheet)

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Sahil (NA) (159 Points)
Replied 29 January 2016

Poornima But the fixed assest value in Tally is not matching with the value of Balance sheet fixed assed schedule. How to match it with Tally??

CMA Poornima Madhava (CMA) (13112 Points)
Replied 02 February 2016

As I understand, in standard Tally, depreciation figure is entered manually (i.e. tally does not auto-calculate).
If so, you need to take out all of the previous data on FA schedule to reconcile the balance for each of the year and rectify the entries as per BS schedule