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Depreciation Accounting

CA S Sundararajan (CAO) (536 Points)

25 January 2008

Dear sir,

How to recognise the amount of deletion while calculate the depreciation as per IT Act and Co. Act.

Case:

Purchase value of Assets - Rs 20705

Date of Purchase - 14-05-2003

Resal value of asset -Rs 2000 on 31.12.07

Rate of Depn

a. IT Act- 15 %

b. Companies Act-13.91%

Q: What isthe amount , I have to shown in Depreciation schedule as Deleted during the year

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3 Replies

Ranganath AAGJ (CA Final Student) (147 Points)
Replied 25 January 2008

as per Com. Act we have to showin delete column WDV of that asset as on first day of the year. entry for the sale of asset to be passed as follows Ex.. bank /cash Dr Depreciation reserve Dr Depreciation for the year Dr Gross value of the asset Cr proft/loss on sale of asset Cr/dr

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CA S Sundararajan (CAO) (536 Points)
Replied 25 January 2008

Thank you Mr. Ragu, My Q is What isthe amount , I have to shown in Depreciation schedule as Deleted during the year as per both the Acts

Aditya (Chartered Accountant) (38 Points)
Replied 25 January 2008

The answer is: In companies Act deletion will be Cost of asset In IT deletion will be amt realised (provided there are other assets in block and amount realised is not greater than wdv of the block as on 31-3 i.e wdv as on 1-4 + Additions) Hope this helps.