Depreciation matter

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2014 My clients previous accountant does not deduct depreciation on any of the assets and shown assets as its cost value.

Now my question is, if I want to deduct depreciation for FY 2013-14, whether I should calculate on value show in B/S?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 September 2014 Yes you have to calculate from the value shown in the balance sheet.

Vishnu Saboo

Vishnu Saboo (Expert)

29 September 2014 yes, you have to charge depreciation for prev year on asset value shown in B/S, but this will be treated as prior period transaction for current year.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2014 What if I do not calculate depreciation of FY 2013.14 also??
Because if I calculate dep for 2012.13 and 2013.14, the net profit will bet too much low.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 September 2014 Previous years depreciation can be adjusted to retained earnings.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2014 Party is individual. It shows only capital on Liability side.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 September 2014 Being individual adjust all depreciation during the current year or in future.

SANIA

SANIA (Expert)

30 September 2014 You adjust all depreciation of prior periods in capital account on debit side and take current year depreciation as deduction from profit & loss account to show correct wdv as on 31.03.2014

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