Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 October 2013
Sir,
Accumulated Depreciation Means.
Accumulated Depreciation Means.
01 October 2013
accumulated depreciation is the sum of depreciation which is provided every year on assets from the date of its purchase.
Original value - Accumulated depreciation = Closing WDV.
Original value - Accumulated depreciation = Closing WDV.
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CA Pallav Singhania
(Expert)
01 October 2013
The summation of depreciation that has been provided till date i.e current year...
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CA Pallav Singhania
(Expert)
01 October 2013
A company buys an asset for Rs.5,000 that has a five-year lifespan and zero salvage value. The company uses straight-line depreciation, and the asset depreciates at a rate of Rs.1,000 per year.
In year one, depreciation will be Rs.1,000, as will accumulated depreciation, and carrying value of the asset will be Rs.4,000.
In year two, depreciation will be Rs.1,000, accumulated depreciation will be Rs.2,000 (Rs.1,000 from the current year + Rs.1,000 accumulated from previous years) and carrying value will be Rs.3,000.
Each subsequent year will follow the same process
In year one, depreciation will be Rs.1,000, as will accumulated depreciation, and carrying value of the asset will be Rs.4,000.
In year two, depreciation will be Rs.1,000, accumulated depreciation will be Rs.2,000 (Rs.1,000 from the current year + Rs.1,000 accumulated from previous years) and carrying value will be Rs.3,000.
Each subsequent year will follow the same process
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