25 March 2008
There is a machinery which has been written off subsequently.The machinery is no more depreciable.But the Machinery has been still put to use in production.It is the only machinery used for production.Can a company charge depreciation on such machinery? According to Companies Act,1956,a machinery which has been written off upto 90% of its Historical cost is said to be written off.
26 March 2008
According to companies Act a assets can be depriciated up to 90% of its value. But after claiming 90% of its value as depreciation no further depreciation can be claimed against such assets.May be the concept behind this assumption or rule is :10% value of such assets can be realsied through its scrap value. And one can not claim depreciation or expenses against any assets more then its value. so there is no question that why one can not further depreciate such assets.But assets are still in use and having a important value but we can not claim more than its cost.
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