I have last 2 years balance sheet.
I want to calculate depreciation as per companies act. But I don't know purchasing or capitalized date of some assets. How to calculate depreciation??? If someone have reverse Calculation Formula so that I calculate exact date... Please help sir / mam 🙏🙏🙏🙏🙏
What is the accumulated depreciation till date? That much amount can be reversed I believe. Ex. Asset value= 10,000₹, useful life= 5 years
Depreciation Accumulated Depreciation
Year 1 2000. 2000
Year 2 2,000 4000
Year 3 2,000 6000
Year 4 2,000 8000
Year 5 2,000 10000
Supposing if you have data for three and four years, check out what is the useful life that is left. It’s obviously one year. Then the accumulated depreciation is 8,000, so, 6,000-8,000=2,000₹. Past years= 2*2000=4,000. This is only a gist because scrap value and reducing balance method schedules are different and must be prepared. I hope you are using SLM method.
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