Depreciation for fy 2014-15 as per companies act 2013

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2015 We have purchased a Fixed Asset on FY 2013-14 for Rs.22000/- ( Laptop ).

In that year it is used for 233 days and depreciation is charged @ 40% for Rs.5618/-.

Now the opening Balance as on 01.04.2014 is Rs. 16382/-

So now as per companies act 2013 what is the correct amount of depreciation to be charges for financial year 2014-15.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 May 2015 calculate 5% of 22,000 and deduct it from wdv as on 1.4.2015 and divide the balance by life of asset as per sch2 is your dep for 14-15

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2015 i am confused.
please help.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 May 2015 16,382- (5% of 22,000)= balance and then balance divide by life of asset as given by sch 2 of co act2013

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2015 I understood the process of Charging Depreciation on existing assets on 01.04.2014 for FY 2014-15.

But how i will charge the depreciation on new acquisitions of Assets on 2014-15 as per companies act 2013.

For Ex-

Original Cost of a Refrigerator is Rs. 13000/- (Office Equipment)

Date of acq. and use - 10/03/2015

Rate of Dep. : 45.07%

Useful Life : 5 Years

Please help.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 June 2015 The rate stated above by you is under WDV Method. You need to calculate the depreciation @45.07% for 22 days. So there is nothing difficult about it.

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2015 will i charge the dep. for 22 days on the value of assets after deducting the (5%) Residual value.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 June 2015 Yes. Your observation is correct.

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2015 But in the sample excel files of depreciation calculator of caclubindia depreciation is charged directly on the original cost of the assets without deducting the residual value.

Please help.