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HIRAL NITIN BHANUSHALI (Querist)
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03 November 2011 on 1-1-05 a machinne costing10000 and a piece of furniture costing20000was purchased depercition is provided 5% on funiture and10% pa on machinery deprecition for year ended 31-3-05 will be

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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03 November 2011 As per income tax act

Dep on machinery=10000*10/100*6/12=Rs. 500/
Dep on furniture=20000*5/100*6/12=Rs. 500/

As per companies Act

Dep on machinery=10000*10/100=Rs. 1000
Dep on furniture=20000*5/100= rs. 1000

CA Anshu Agarwal

CA Anshu Agarwal (Expert)
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04 November 2011 the rate of depreciation @ 5% on furniture and 10% on machinery are neither as per income tax nor as per companies act. however, using these rates.. .the depreciation for the year ended on 31-03-2005 shall be

on furniture: 20000*5/100 *3/12 = 250
on machinery: 10000*10/100 *3/12 = 250

Total depreciation (new furniture and machinery) = Rs.500.

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