jayanta patra (students) (95 Points)
17 July 2012
Dears ,
A psrtnership firm is taken over by the company in the month of june.2011, while preparing the account of partnership for the period april to june. & company ac for the period july to march.how to calculate depriciation for the period in both entity.
as on 1.4.2011
Computer & Accesories- Rs.222633.
Furniture & fitting- Rs.79786
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 18 July 2012
Hi Jayanta, First Calculate the Depreciation on the total asset on the desired rate (for example for the purpose of Income Tax these rates are 60% & 10% respectively) and then allocated these depreciation on pro - rata basis.
For Example,
For Income Tax Purpose :
April,2011 to June,2011 : 3 Months
July,2011 to March,2012 : 9 Months
Now,
Assets W.D.V. as on 01.04.2011 Dep. Amt
Computer (60%) 222633 133580
F & F (10%) 79786 7979
Now Allocation,
Dep on Computer,
Partnership = 133580 X 3/12 = 33395
Company = 133580 X 9/12 =100185
Dep on F & F
Partnership = 7979 X 3/12 = 1995
Company = 7979 X 9/12 = 5984
CAclubindia
