Easy Office
LCI Learning

Depreciation matter

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
29 September 2014 My clients previous accountant does not deduct depreciation on any of the assets and shown assets as its cost value.

Now my question is, if I want to deduct depreciation for FY 2013-14, whether I should calculate on value show in B/S?

29 September 2014 Yes you have to calculate from the value shown in the balance sheet.

29 September 2014 yes, you have to charge depreciation for prev year on asset value shown in B/S, but this will be treated as prior period transaction for current year.




Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
29 September 2014 What if I do not calculate depreciation of FY 2013.14 also??
Because if I calculate dep for 2012.13 and 2013.14, the net profit will bet too much low.

29 September 2014 Previous years depreciation can be adjusted to retained earnings.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
29 September 2014 Party is individual. It shows only capital on Liability side.

29 September 2014 Being individual adjust all depreciation during the current year or in future.

30 September 2014 You adjust all depreciation of prior periods in capital account on debit side and take current year depreciation as deduction from profit & loss account to show correct wdv as on 31.03.2014






You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries