Depreciation matter

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

Vishnu Saboo

Vishnu Saboo (Expert)
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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)
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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)
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29 September 2014 Being individual adjust all depreciation during the current year or in future.

SANIA

SANIA (Expert)
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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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