Depreciation under companies act 2013

261 views 1 replies

The Companies Act, 2013 requires companies to compute the depreciation in accordance with the Schedule II to the Companies Act which provides useful lives to compute the depreciation.

When we follow the method of computation of depreciation pronounced in Sch II of Companies Act under WDV method, the residual value is not matching with Scrap value fixed initially. 

Small illustration has been provided below:

Cost of the asset   100000  
Life of the asset   5 years  
Date put to use   1st July 2015  
Method of Depreciation    Written Down Value method
Scrap value   500  
Rate of Depreciation   65.34%

 
 
Year Depreciation WDV
1                       49,096            50,904
2                       33,262            17,642
3                       11,528              6,114
4                         3,995              2,119
5                         1,385                  734
6                             120                  615
       

Kindly explain how to deal with the difference amount of Rs.115 i.e. 615-500

With regards
       
Replies (1)
Difference is due to rounding off and decimals (more than 2 may be ) used for rate of depr. Otherwise there wont be any difference.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details