Personal account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2013 Sir,
Please reply that in personal accounting, in Profit and Loss A/c whether depreciation is allowed or not for car or personal computer etc. if the individual is a salaried employee and if he wants to prepare his balance sheet. Also guide which things to remember to consider in case of preparing balance sheet of salaried person
thank
Pl reply

CA. Hari Kishan

CA. Hari Kishan (Expert)
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02 March 2013 Depreciation is not available for a salaried employee as deduction. However in real the cost and value of the assets depreciates the book value to continue at cost.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2013 Please guide elaborately

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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04 March 2013 Depreciation is reduction in value of asset.

For salaried employees accounting for depreciation does not make any difference in computation of Income for tax purposes.

Normally, assets in personal books are not depreciated. The logic being, you balance sheet will look healthy if you show assets at cost in balance sheet.

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