DEPRECIATION ON LOSS OF ASSET

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This discussion addresses the accounting treatment for depreciation when an asset, such as a truck bought in 2018-19, is lost during the 2022-23 financial year. It clarifies how to calculate annual depreciation and what portion of the remaining value should be recorded as a loss. The guidance also highlights the rule that depreciation is halved if an asset is used for less than 180 days in its first year of purchase.

RAVINDRA KUMAR

RAVINDRA KUMAR

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22 June 2023 WHAT TREATMENT OF DEPRECIATION SHOULD BE MADE IN CASE OF LOSS OF TRUCK DURING YEAR-2022-23 IF THE TRUCK WAS PURCHASED IN YEAR-2018-19 ?

RAJA P M

RAJA P M (Expert)
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22 June 2023 Provide the depreciation as per year end. Balance amount to be loss account

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Aashok Kumar Sharma

Aashok Kumar Sharma

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20 August 2023 Where an asset acquired during the previous year and is put to use for the purpose of business or profession for a period of less than 180 days in that previous year, depreciation allowance shall be restricted to 50% of the amount calculated at prescribed rates

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