Here is the most rare question which is normally used but not noticed by persons.
A.S. 6 clarifies that while calculating depreciation rate whether by S.L.M. or by W.D.V. or any other method whatsover which the management deems fit for earning according to the repairs and maintenance.
NOW the question is that what is the depreciation rate when number of useful life is uneven i.e. say 3.4166666667.
while we applying the formula S>L>M> i.e. for e.g. ,
( original cost -scrap)/ no. of useful life
the above formula gets absurd because depreciation is based on yearly concept............and for the residual month. year is proportioned accordind to the needs.
what is the rate when no. of useful life is uneven i.e. say 3.4166666667 if scrap is y and original cost is X ?????
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