Experts please reply-de. under co. act 13 query
This query is : Resolved
CA Parul Saxena
(Querist)
13 March 2015
In schedule II only useful life is given. But some authors have uploaded files in file section indicating SLM and WDV rates according to useful life of Assets how they derive the rates???
15 March 2015
In Schedule II useful life is given.
WDV rates are determined using mathematical formula in such a way that at the end of the usefull life of the Assets, after charging depreciation under WDV, residual value will be same as under SLM method. You charge depreciation under any method the residual value at the end of useful life will be same under both.
WDV rates are determined using mathematical formula in such a way that at the end of the usefull life of the Assets, after charging depreciation under WDV, residual value will be same as under SLM method. You charge depreciation under any method the residual value at the end of useful life will be same under both.
15 March 2015
You can try calculating yourself using below formula:
r = 1-(s/c)^(1/n)
Where,
r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets
For example take Plant & Machinery:
r=1-(5/100)^(1/15)
=18.10%
Hope now it will be clear for you.
r = 1-(s/c)^(1/n)
Where,
r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets
For example take Plant & Machinery:
r=1-(5/100)^(1/15)
=18.10%
Hope now it will be clear for you.
CA Parul Saxena
(Querist)
16 March 2015
Thanks sir
But under file section some authors has uploaded file under which SLM and WDV rates are given according to useful life how they derive it? and how you calculate 1-0.05^1/15=18.10%
But under file section some authors has uploaded file under which SLM and WDV rates are given according to useful life how they derive it? and how you calculate 1-0.05^1/15=18.10%
16 March 2015
Parul Ji
Just put the above stated formula in excel and then only you can see the result.
Please try it.
=1-(5/100)^(1/15) Put this in excel.
Where,
r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets
Just put the above stated formula in excel and then only you can see the result.
Please try it.
=1-(5/100)^(1/15) Put this in excel.
Where,
r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets
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