Saurabh Goyal (CA Final) (393 Points)
10 September 2013I have a query relating to depriciatoin?
Suppose a business has a block of assets containing foll.
asset 1- Rs 100000
asset 2- Rs 100000
asset 3- Rs 300000
It sells the asset3 for 2 lacks.
So now the WDV of the block should be Rs 100000+100000+300000-200000=Rs Rs 300000
But what will be WDV of the each of remaining two assets and how we calculate it???
CA D.C. Bansal
(Accounts Head)
(283 Points)
Replied 10 September 2013
Dear Saurabh,
As per Income Tax, you need not to maintain the value of individual asset but have to maintaint only block of assets.
B.SEKAR
(manager-accts.)
(61 Points)
Replied 10 September 2013
Dear Mr. Goyal, for the Income tax depreciation calculation, you can deduct sale value of assets from the particular assets balance value. Balance will be the WDV. But for the book depreciation, you have remove the total depreciation of the selling asset from Depreciation reserve & take depn upto the date of sale balance will be wdv and deletion from the total assets of cost price of assets. by sekar
lakshmi narayana
(CA student)
(124 Points)
Replied 10 September 2013
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