Depreciation
This query is : Open
26 March 2012
Can the company charge depreciation for the full month even if the additions is done on the last day of the month. Also can the company charge the depreciation for the full month even if the assets is sold on the 1st day of the month. It has been mentioned as the accounting policy of the company.
For Example - In case company purchase computer on 28th Sept than can the company charge the depreciation from 1st sept and if company sell any vehicle on 5th oct than can the company charge the depreciation for full month of oct.
For Example - In case company purchase computer on 28th Sept than can the company charge the depreciation from 1st sept and if company sell any vehicle on 5th oct than can the company charge the depreciation for full month of oct.
Guest
Guest
(Expert)
26 March 2012
Company can follow its own policy of depreciation, as per companies act. It can estimate the useful life of asset and depreciate it accordingly.
Regarding depreciation for no. of days charged, i am not sure whether we can follow what you have mentioned.
As mentioned that company can adopys its own policy, days charged also can be considered as part of policy..
Regarding depreciation for no. of days charged, i am not sure whether we can follow what you have mentioned.
As mentioned that company can adopys its own policy, days charged also can be considered as part of policy..
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