Depreciation
This query is : Resolved
11 January 2014
please tell me about SLM and WDV method of depreciatio when we use slm method WDV vice versa
11 January 2014
In Written Down Value (WDV) method
depreciation is charged on the reuced
price. Example: Asset purchased for Rs.
100.00: Depreciation rate 10%. First year
its value will be reduced to 90.00
(100-10% of 100) and in second year
depreciation will be Rs. 9.00 i e 10% of
90. Similarly third year it will be Rs.
8.10. This way the value of asset never
comes at Zero.
depreciation is charged on the reuced
price. Example: Asset purchased for Rs.
100.00: Depreciation rate 10%. First year
its value will be reduced to 90.00
(100-10% of 100) and in second year
depreciation will be Rs. 9.00 i e 10% of
90. Similarly third year it will be Rs.
8.10. This way the value of asset never
comes at Zero.
11 January 2014
In Straight Line Method (SLN) life of a
asset is known then for the duration of
life ever year an equal sum is taken as
depreciation. Example Asset purchased
for Rs. 100.00 Life ascertained 8 years
and then every year a sum of Rs. 12.50
is charged to Depreciation and after 8th
year its book value will be zero.
WDV method is strongly recommended.
asset is known then for the duration of
life ever year an equal sum is taken as
depreciation. Example Asset purchased
for Rs. 100.00 Life ascertained 8 years
and then every year a sum of Rs. 12.50
is charged to Depreciation and after 8th
year its book value will be zero.
WDV method is strongly recommended.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
