Suraj (819 Points)
30 April 2019Dear All,
I wish to know how to calculate the depreciation as per Companies Act 2013 where the proprietorship business was taken over on 01/04/2018 by private limited company newly formed for the purpose of such take over.
How to calculate depreciation in case of equipment, computers purchased & used by the proprietor in earlier years now taken over by the Company?
Kindly advise.
Thanks & Regards,
Suraj Patil
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907))
(1306 Points)
Replied 01 May 2019
Suraj
(819 Points)
Replied 02 May 2019
Thanks Sir.
It means suppose WDV of machinery in the books of proprietor was Rs. 95000/- as on 31/03/2018 and it was taken over by Pvt Ltd from 01/04/2018 then for depreciation purpose, we will consider Rs. 95000/- and apply conditions under companies act like residual value to be considered at 5% and work our depreciation accordingly .... right? mean 01/04/2018 will be the purchase date of machinery for pvt ltd. ... right?
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907))
(1306 Points)
Replied 03 May 2019
CAclubindia
