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Saurabh (Querist)

23 November 2009 WDV of a block of assets(comprising assets: A,B,C,D)as on 1/4/08 Rs.5,00,000

acquired asset E on 1/7/08 for Rs.1,00,000

sold assets A&B on 1/1/09 for Rs.6,50,000

acquired asset F on 1/11/09 for Rs.80,000 & sold asset C on 1/12/09 for Rs.20,000

rate of depriciation 20%

What will be depriciation for previous year 2008-09 & 2009-10 & WDV as on 1/4/09 ?

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)

23 November 2009 F.Y. 2008-09 ->
WDV on 01.04.2008 - Rs 500000 (A,B,C,D)
Add: All Purchases made during the year 2008-09(E) - Rs 100000
Total - (A,B,C,D,E) - Rs 600000
Less: Sales during the year 2008-09 (A,B) - Rs 650000
W.D.V. of Block (C,D,E) on 01.04.2009 - NIL
Short Term Capital Gains - Rs 50000

Since the WDV of block is NIL, therefore No depreciation is to be charged for the year 2008-09

F.Y. 2009-10 ->
W.D.V. of Block (C,D,E) on 01.04.2009 - NIL
Add: Purchase during the year 2009-10 (F) - Rs 80000
Total (C,D,E,F) - Rs 80000
Less: Sales during the year 2009-10 (C) - Rs 20000
W.D.V. as on 01.04.2010 (D,E,F) - Rs 60000

Depreciation for year 2009-10 - 60000 * 15% * 1/2 (because put to use < 180 days) = Rs 4500

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)

24 November 2009 Agreed , Thank you Rishabh

Saurabh

Saurabh (Querist)

24 November 2009 rate of depriciation is 20%

therefore Depreciation for year 2009-10 - 60000 * 10% * 1/2 (because put to use < 180 days) = Rs 4500 instead of
Depreciation for year 2009-10 - 60000 * 15% * 1/2 (because put to use < 180 days) = Rs 4500

(ref: as per yours reply)

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