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Need help - Depreciation as per Companies Act.

Rangarajan (CA Student) (200 Points)

30 August 2008

hi everyone.

i have a doubt in companies act depreciation. i am attaching a file mentioning my doubt. please clarify. thanks in advance

regards

rangarajan.k

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10 Replies

Rangarajan (CA Student) (200 Points)
Replied 30 August 2008

sorry i think i messed up with profit and loss on sale. This is the correct file

Attached File : 10 depreciation.xls downloaded: 1004 times

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Shubhankar Limaye (B.Com.) (174 Points)
Replied 30 August 2008

1. If the machine is sold at profit the entry would be
Debtor A/c             Dr.. Total amount receivable
Depreciation A/c Dr...Current year depreciation upto the date of sale
To Plant and Machinery A/c    - WDV
  To Profit on sale of asset A/c - Profit.

While filling up the schedule of fixed assets, we will deduct gross cost from gross block, show current year depreciation in depreciation block and then deduct entire depreciation charged (accumulated depreciation at at the beginning of the year plus current year's depreciation) from depreciation block.

2. In case of sale of asset at a loss following entry shall be passed
Debtor A/c Dr.. Total amount receivable
Depreciation A/c Dr...Current year depreciation upto the date of sale
Loss on sale A/c Dr..Loss on sale
To Plant and Machinery A/c - WDV

The treatment that is to be given in fixed asset schedule, however, shall not change.

Such treatment effected in fixed assets schedule takes care of proper recording of profit or loss on sale of asset.

CA Nitin Wadhwani (Chartered Accountant) (4469 Points)
Replied 31 August 2008

In Gross Block Column

Deductions = 400000/-

In Accumalated Depreciation

Sale/Adjesuments=76000/-.

No Need To Show Profit Or Loss.

(Guest)

Hey,

Pls. provide me Depreciation rate for all fixed assets with company act and all shift like (single, double and three shift)

Thanks

Narendra

(Guest)

I have doubts in depreciation and accumulated depreciation.

I have also doubts in deferred.

I have doubt for depreciation on land -

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Rakesh kumar (Employee) (23 Points)
Replied 26 February 2009

plz tell me detail of depreciation as per company act

CA SUDIPTA SINHA (Commerce Coaching- Accounts Cost FM) (735 Points)
Replied 26 February 2009

hi, Shubhankar Limaye... i appreciate uor endeavour in replying to the querry....however i want to point out one thing.....when u sell an asset the respective party a/c is debited not the debtor.....when u sell goods debtor is debited....otherwise u cant use the word debtor...