Urgent query
This query is : Resolved
05 May 2015
Sir/Madam,
Please help me in the given situation---
A printer purchased as on 27/08/2008 for Rs. 11,076.00 useful life upto 31/03/2014 is 2043 days ,useful life as per Co Act'13 is 3 years so the remaining life is (948) days.
Now the co wants to change the method of depreciation from WDV to SLM basis.
As per Co Act '13 the remaining life of that asset is 'nil'. So the balance as on 01.04.2014 to be adjusted with retained earnnings.
My Calculation shows that the Value of the asset as on 31.03.2014 as per WDV method is Rs.652 and as per SLM method it is Rs.1027.
Now my question is what amount should be charged ??/
Rs.652 or (Rs.375) <--[1027-625]
Thanks in Advance
Please help me in the given situation---
A printer purchased as on 27/08/2008 for Rs. 11,076.00 useful life upto 31/03/2014 is 2043 days ,useful life as per Co Act'13 is 3 years so the remaining life is (948) days.
Now the co wants to change the method of depreciation from WDV to SLM basis.
As per Co Act '13 the remaining life of that asset is 'nil'. So the balance as on 01.04.2014 to be adjusted with retained earnnings.
My Calculation shows that the Value of the asset as on 31.03.2014 as per WDV method is Rs.652 and as per SLM method it is Rs.1027.
Now my question is what amount should be charged ??/
Rs.652 or (Rs.375) <--[1027-625]
Thanks in Advance
05 May 2015
For the current year only the company wants to go for straight line method so the depreciation charged up to 31-03-2014 should not be disturbed. Only on the carrying cost as on 01-04-2014 depreciation for the year applied/ adjusted with retained earnings.
Accordingly the 652 has to be adjusted against retained earnings.
Accordingly the 652 has to be adjusted against retained earnings.
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