Jasmine (94 Points)
19 November 2007Can anybody guide me on following topics.
-> Can I assume the number of days in a year for calculating depreciation or is anything defined in the Co's Act.
-> Should I first calculate the depreciation for the assets sold to arrive at exact profit/loss on sale of such assets. If so plz give some eg.
-> If Dep is to be calculated on the assets before sale, what amount to be considered for calculating depreciation if part of assets is sold.
plz reply as early as possible.
Shyam Lal Naik
(Service)
(6156 Points)
Replied 19 November 2007
Narendra
(Employment)
(154 Points)
Replied 19 November 2007
CA AYYAPPA
(Chartered Accountant)
(272 Points)
Replied 22 November 2007
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 19 April 2009
Dear its easy to work in an excel sheet as follows:
(a) (b) (c) (d) (e) (f)
WDV Date 1st april Date - dt of Sale No of days % Depreciation
a) Value to be mentioned b) & C) date field in format e) % to be mentioned
b) ( - ) c) you will get no. of days in excel (d) it has to be multiplied by b) x d) x e)/ 365 & u will get the result in f)
Try this all the best
vijay
(.)
(212 Points)
Replied 20 April 2009
-No. of Days to be taken while calculating Depreciation is 365 (366 in Leap Year.)
-Depreciation has to be computed till the date of sale.
-Before sale you have to calculate depreciaton on the WDV of the asset.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
