DEPRICIATION

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seema wadhwa (Querist)

28 June 2011 ASSET HAS WRITTEN DOWN VALUE AS ON 01.04.2010 Rs. 250809 and sold for Rs 219127 dated 21.03.2011 now depreciation related with sold asset would be shown in profit and loss and balancesheet or not and if yes then how will we show it and how much dep. will be please tell me accounting treatment Rate of depriciation is 13.91%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 June 2011 Following observation is based on companies act,1961.
(1)For P &l purpose:-
depreciation from 1/4/2010 to 21/03/2011 @13.91% for 354 days is Rs.33,836/-
W.D.V as on date of sale is ,Rs. 2,50,809/- minus Rs.33,836/- = Rs.2,16,973/-
Profit on sale is ,Rs. 2,19,127/- minus Rs.2,16,973/- = Rs.2,154/- which may be credited to P & L a/c.

(2)For Balance sheet Purpose:-
In the fixed asset schedule, original cost should be deducted from the 'gross block', depreciation up to 31/3/2010 plus Rs.33,836/- should be deducted from the 'depreciation block' and in 'net block'put the figure as zero.

seema wadhwa

seema wadhwa (Querist)

28 June 2011 thankyou very much sir

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