Harikrushna jajal (Accountant) (108 Points)
02 June 2015Original cost of Asset (Say Asset No.1) = 35,70,000/- Date of Purchase = 01/05/2012
Estimated Residual Value (5%) = 1,78,500/- Method of Dep. = SLM
Sch II Useful life = 3 Yr
Carrying Value as on 01/04/2014 = 24,60,170/-
Sale Value of item (Say Asset No.1) = 18,66,357/-
Date of Sale = 31/03/2015
What will be Depreciation & Profit/ Loss on Sale?
RAHUL
(Student CA Final )
(377 Points)
Replied 03 June 2015
Date of Purchase: 01/05/2012; Cost: 35,70,000; Useful Life: 3 Years; Residual Value: 1,78,500
Total Depreciation: 3570000-178500= 33,91,500
Carrying amount on 01/04/2014: 24,60,170
Depreciation charged till 01/04/2014: 11,09,830
Remaining Depreciation: 22,81,670 over 13 months
Depreciation for FY 2014-15: 21,06,157
Carrying amount on 31/03/2015: 24,60,170-21,06,157=3,54,013
Sale value: 18,66,357
Profit on Sale: 15,12,344
The answer might not be correct. ;)
Harikrushna jajal
(Accountant)
(108 Points)
Replied 03 June 2015
Rahul,
You have taken 13 months . Whay not 13 months & 1 Day?
Harikrushna jajal
(Accountant)
(108 Points)
Replied 03 June 2015
Rahul,
You have taken 13 months . Whay not 13 months & 1 Day?
Can you provide me the rate of depreciation for current year , and how you derive it ?
RAHUL
(Student CA Final )
(377 Points)
Replied 03 June 2015
I didn't take 1 day for the sake of simplicity. You can calculate for the sake of accuracy. Depreciation wasn't charged using rate, but as per the provisions, the remaining depreciation was depreciated over the remaining useful life.
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