Pls suggest me what will be the journal entry for following transaction.
"Last year Educational trust is working on Cash Basis so the trust is not calming the depreciation on Fixed assets but due to audit objection trust changes its method to mercantile basis in current year, so pls tell me what will be the entry for calming depreciation for last year and current year in the books of accounts for current year"
08 June 2011
Better to conduct a FA Valuation by a Approved valuer and then take value in the books otherwise take opening balance and charge dep in current year...any way for IT purpose you are supposed to submit separate dep calculation not necessary matching with books...so in books you can follow above mentioned two options for IT you have to recalculate if not earlier claimed the depreciation and arrive the WDV as per IT then take depreciation as per IT
CAclubindia
