Depreciation
This query is : Resolved
16 February 2010
Hi All,
Query Ist
Companies Act says or suggests to depreciate 95% of assets???
I mean can i depreciate 100%??? or is it mandatory to stop at 95 %.
2nd
Further Can a item like mouse be capitalized with say amount 200 and Depr. with rate 100%( assume not taken along with PC) or i have to show it as repair and maintainence??
same way a pen drive worth Rs 1500 should be capitalized???
Query Ist
Companies Act says or suggests to depreciate 95% of assets???
I mean can i depreciate 100%??? or is it mandatory to stop at 95 %.
2nd
Further Can a item like mouse be capitalized with say amount 200 and Depr. with rate 100%( assume not taken along with PC) or i have to show it as repair and maintainence??
same way a pen drive worth Rs 1500 should be capitalized???
16 February 2010
There is no such recomdation in companies act to depreciate 95% or not. In fact whose actual cost does not exceed five thousand rupees, shall be provided depreciation at the rate of hundred per cent is mentioned in the companies act.
16 February 2010
Agreed no such mandatory provision for depreciating 95%, you can consider salvage value and balance can be depreciated accordingly
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