Depreciation on fixed assets as per companies act

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Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2013 Safar P Ltd engaged in Transportation activity is having 5 Trucks (Fixed Assets) in its own name. The trucks were purchased for Rs 125.00 Lakhs on 25/03/2012. While preparation of Financial Statements for FY 2011-12, depreciation was charged @ 16.21% for 6 days. So an amount of Rs 66540.00 (Rs 33308*5 trucks) was charged to Profit and Loss A/c. now, my question is how to charge the depreciation during 2nd year.
Should it be on Rs 125.00 Lakhs or on Rs 123.33460 Lakhs (12500000.00 - 66540.00) it means Rs 2026250.00 or Rs 2015464.00 which figure is correct.
Kindly explain the benefit of SLM and WDV rate as per Companies Act
What is NESD as per Depreciation Chart of Companies Act

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 September 2013 a) 16.21% is the rate under SLM( straight line method).

b) In the 2nd year and onwards depreciation has to be charged on Rs. 125 lakhs at the rate of 16.21%.

c) NESD means 'No Extra Shift Depreciation'.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2013 Thank u very much sir for your response.
So it means that i should consider Rs 20.25 Lakhs as depreciation during second year

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