Depreciation on block of assets

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ambar singh (Querist)

21 February 2011 There was a asset in a block of 10% with WDV Rs 400000, on 1'st April, 2010. Another asset was bought in November 2010( of same block)of Rs. 20000 and the first asset was sold at Rs. 50000. Now the value in block is more than that of the asset,so how the depreciation will be charged? Please help me.

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)

22 February 2011 Dear Ambar : The Block concept is little different, unless all the assets in the blocks are sold the block will continue. You have to calculate depreciation as follows, (Rs400000-50000=350000 *10% =35000)+(20000*10%/2=1000) total depreciation =36000 & closing WDV will be 334000/- of the Block

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Ashok Asthana

Ashok Asthana (Expert)

23 February 2011 Please chech calculations. The asset was added Rs. 20,000 and another sold for 50,000.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

24 February 2011 dear Ambar..

Op block == 400000/-

add : == 20000/-

less : 50000/-

Net block = 370000/-
Depreciation = (400000 - 50000)*10% = 35000/-
& 20000/- * 5% = 1000/-
Total Deprn : 35000 + 1000 = 36000
Net Block = 370000 - 36000 = 334000/-

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S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)

24 February 2011 Dear sorry for clerical mistake, rectified the same.

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