A vehicle was purchased in 2016 in 180000/- and sold in 110000/- in current year for business no depreciation was charged on the vehicle till date and there is only one vehicle. now
1.What will and how to calculate
WDV on vehicle as rs 180000/- is showing in the books.
2.Should we charge depreciation for 5 years since 2016 in current year and debit the whole amount of depreciation in p&l acc along with profit or loss on vehicle. or
3.Should we calculate profit or loss without charging depreciation.
can anyone help and calculate it. thanks.
Since you did not charge it at all, charge it from the beginning.
CAclubindia
