sneha (Accountant) (51 Points)
28 May 2010hey gyz... help me out on this... suppose we buy a new machinery in the mid of the accounting year which have a cost of less than rs.5000 so we will charge 100% depriciation on it(in other words we will not capatalise it and will take it into p&l)... will this concept also apply on other fixed assets...?? i am preparing for c.a inter and have not read this concept uptil now... i've learned this concept during the audit today so i'm confused about it... help me out.. thanx...!!
manoj
(student)
(5205 Points)
Replied 28 May 2010
/forum/depreciation-as-per-company-law-76826.asp
check the above forum it will clear u r concept
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 28 May 2010
Some companies are following 100% depreciation procedure according to their Asset policy. But, taking to directly into P&L account is Wrong.
Company has to account as asset and 100% depreciation can charged in P&L. If follow this procedure, their asset accounting and fixed asset register is very clear and informative manner.
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