bhavik mehta (C.A.) (526 Points)
27 September 2010hi frnds,
I have a query that , if in calculation of depriciation as per companies act , following SLM , .
what to do in this year in following situation.:
opening as on 01/04/2009 -Rs.36854/-
Rate- 9.5%
Depriciation Fund Balance as on 01/04/09- 36761.39
what amt of depriciation is to be provided in this year???????
thnks in advance.
Nirav
(Bcom, LLB, CA Final)
(107 Points)
Replied 28 September 2010
Mr. Bhavik
As per the general practice, while calculating the depreciation under Companies act u hav to calculate the value to assets indivudually and wen the amount of cumulated depreciation of such asset reaches 95% of the value of such fixed assets u shud not provide depreciation in case of such assets.
further there is no nexus between the WDV as on date and the cumulative depreciation so not compare it.
hope u are satisfied by my reply
bhavik mehta
(C.A.)
(526 Points)
Replied 28 September 2010
thnks frnd,
inspite of bad represantaion of the question you gave full satisfactory answer..,.
CAclubindia
