Depn an Assets costing less than Rs 5000 each

This query is : Resolved

K V Subba Rao (Querist)
Follow

14 July 2011 As per Notes appended to the Rates of Depreciation under the Companies Act as mentioned in Schedule XIV---

“4. Where, during any financial year, any addition has been made to any asset… the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition…”.

“8…depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred per cent”

Please advise whether, in case of buying a Cell Phone costing Rs 3000 in Jan, we should charge off in Accounts towards Depreciation in the year of acquisition

(a) Rs 3000 (entire cost being less than Rs 5000) as per Note 8; or

(b) Rs 756 (3000x100/100x91/365) only as per Note 4

If we charge off Rs 756 only in the year of acquisition and carry forward the balance to next year and go on calculating Depreciation at normal rate, it will lead to finding petty amounts in Assets Register

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

14 July 2011 You can charge of 100% depreciation for Mobile purchase for Rs.3000, it will be covered

8…depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred per cent”

even purchase in between the years also

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

bhagat ram goyal

jagadheswar goud

Jaipal Singh

HITESH PATEL

NISHANT SIPANI

Subscribe Now

Depn an Assets costing less than Rs 5000 each

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA