Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2014 When an asset like computer is purchased for rs 40000, and depreciation is taken for 3 years .

now after 2 years the mother board got damaged and so purchased a new one at a cost of 15000/- .

now my question is ?
1 how to calculate depreciation
2 shuld we treat mother board as an spare part or an asset ?

CA Roshan Jha

CA Roshan Jha (Expert)
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15 November 2014 Since it increases the life of the asset, it has to be capitalised. You add the cost of motherboard to the w.d.v of computer and charge depreciation on the same.

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CA Roshan Jha

CA Roshan Jha (Expert)
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15 November 2014 Since it increases the life of the asset, it has to be capitalised. You add the cost of motherboard to the w.d.v of computer and charge depreciation on the same.