What is the formula of calculating depreciation under w.d.v method in f.y -2015-16?
Swati Mukherjee (14 Points)
02 July 2016What is the formula of calculating depreciation under w.d.v method in f.y -2015-16?
Ajeet Singh
(Service )
(190 Points)
Replied 02 July 2016
Ajeet Singh
(Service )
(190 Points)
Replied 02 July 2016
Calculating Depreciation under WDV method:
1. Original Cost 100
2. Original Useful Life (Co Act, 1956) 20 years
3. Depreciation rate (Co Act, 1956) 13.91 %
4. New Useful Life (Co Act, 2013) 15 years
5. Expired Life 5 years
6. Remaining Useful Life (4-5) 10 years
7. Accumulated Depreciation 52.71
Depreciation will not be calculated over 15 years. It will be calculated over 5 years only.
Formula to calculate WDV rate:
formula
We will like to discuss how to calculate such square root:
First divide 5,000/1,00,000 : 0.05
Press under root button 12 times
Subtract 1
Divide by factor, here 10
Add 1
Press (* =) 12 times
After these, amount 0.7412
Now, 1 – 0.7412 = .2588 i.e. 25.88 %
Here, Carrying Amount = 100 – 52.71 = 47.29
Year Closing Balance
1 35.05
2 25.98
3 19.26
4 14.27
5 10.58
6 7.84
7 5.81
8 4.31
9 3.19
10 2.37
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