Depreciation
This query is : Resolved
23 May 2012
Dear Sir / Madam
Days wishes!
Can any one please help to account depreciation of fixed assets as per companies act 1956.? can i reduce the fixed assets cost from books or can show it only in balance sheet. That is a Pvt. Ltd., company with 2 directors and Capital amount of Rs. 5,00,000/-!
any one help regarding this
Days wishes!
Can any one please help to account depreciation of fixed assets as per companies act 1956.? can i reduce the fixed assets cost from books or can show it only in balance sheet. That is a Pvt. Ltd., company with 2 directors and Capital amount of Rs. 5,00,000/-!
any one help regarding this
23 May 2012
Depreciation A/C Dr
Fixed Asset A/c Cr
Or write the name of Asset such as Car, Computer in stead of Fixed Assets.
Above entry will automatically reduce the value of that particular asset.
Fixed Asset A/c Cr
Or write the name of Asset such as Car, Computer in stead of Fixed Assets.
Above entry will automatically reduce the value of that particular asset.
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24 May 2012
thanks for your reply... but my question is can i reduce the cost of the assets or can i show the depreciation value in dep. reserve a/c? is their any changes in computing or calculating dep b/w IT act 1961 and companies act 1956? if yes what is the diff?
24 May 2012
You cannot reduce the Book Value of any Asset but on some specific reason such as theft, damages in flood or fire etc.
The rate and method of calculating Depreciation is different as per Income Tax Rules and as per Company Rules. However, in books and balance sheet depreciation is considered as per Company Act.
Difference in amounts vary from asset to asset.
vkbajaj1950@yahoo.co.in
The rate and method of calculating Depreciation is different as per Income Tax Rules and as per Company Rules. However, in books and balance sheet depreciation is considered as per Company Act.
Difference in amounts vary from asset to asset.
vkbajaj1950@yahoo.co.in
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