Depreciation as per companies act 2013
This query is : Resolved
27 October 2015
If the carrying amount as on 31.03.2014 is less than 5% of original cost, should we adjust the difference with the opening balance of retaied earnings or take the asset at the residual vaule of 5% of orinal cost as o 31.03.2015?
what is the treatment with explanation?
Example
Original cost of asset - Rs 1000
Carrying Cost as on 31.03.2014- Rs48
Useful life of asset sch II- 10 years
Purchase date of assset - 1.3.2000
Residual value- 5%1000 = Rs.50
what is the treatment??
what is the treatment with explanation?
Example
Original cost of asset - Rs 1000
Carrying Cost as on 31.03.2014- Rs48
Useful life of asset sch II- 10 years
Purchase date of assset - 1.3.2000
Residual value- 5%1000 = Rs.50
what is the treatment??
27 October 2015
No adjustment is required as per companies act 2013. Residual value can be less than 5% as per companies act 2013.
Only lesser depreciation charged in earlier years has to be adjusted against retained earnings.
Only lesser depreciation charged in earlier years has to be adjusted against retained earnings.
Message likes :
1 times
27 October 2015
what is the treatment in below example:
Original cost of asset - 10000
WD.V. as on 31.03.2014- 48
Useful life of asset- 10years
Remaining life of asset as on 31.03.2014 is NIL.
hOW MUCH AMOUNT IS TRANSFERRED IN RETAINED EARNING?
AND WHAT IS THE TREATMENT IF carring cost of assset is less then residual value of asset(i.e. less than 5% of original cost)??
Original cost of asset - 10000
WD.V. as on 31.03.2014- 48
Useful life of asset- 10years
Remaining life of asset as on 31.03.2014 is NIL.
hOW MUCH AMOUNT IS TRANSFERRED IN RETAINED EARNING?
AND WHAT IS THE TREATMENT IF carring cost of assset is less then residual value of asset(i.e. less than 5% of original cost)??
28 October 2015
1. No need to transfer amounts to retained earnings.
2.Residual value is Rs. 48 shall be carried to Balance sheet.
2.Residual value is Rs. 48 shall be carried to Balance sheet.
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
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- Taxable or Tax exempt
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- TDS Deducted AY-2013-14 Not Reflected in 26as
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- GST not cancelled by tenant
- Eway bill generation from place other than registeted
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
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
