Assets WDV say Rs. 50,000/-
if we booked dep. on 31st march' 2010: depreciation a/c Dr. 30K
Assets Cr. 30K
now assets balance ladger would remain by Rs. 20Kb”, Mr Kumar up to this point nothing is disputed.
What do you wish us to understand from your following lines :
“but income tax dept. will allow only Rs. 20k as depreciation claim then what is the accounting entry for Rs. 30k-20k=10k??”
Calculations of Depreciation as per Income Tax is carried on only for the computation of INCOME TAX RETURNS. Yourgoodself may be aware of this point that no entry regarding this (Calculations of Depreciation as per Income Tax ) will factor in the Books of Accounts.