Very very urgent

This query is : Resolved

Bhawna Rajpal (Querist)
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25 June 2013 HI

IF WE HAD TRANSFERED FIXED ASSETS FROM ONE BRANCH TO ANOTHER BRANCH IN FINANCIAL YEAR 2012-13 (SUPPOSE IN THE MONTH OF FEBRUARY 2013) THEN HOW TO PUT DEPRECIATION ON THAT ASSETS IN BOTH BRANCHES ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 June 2013 THE BEST WAY IS TO ALLOCATE THE DEPRECIATION IN THE PROPORTION OF NO OF DAYS , THE ASSET HAS BEEN USED IN EACH BRANCH DURING THE FY.

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)
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26 June 2013 Completely Agree with Paras Sir.

Bhawna Rajpal

Bhawna Rajpal (Querist)
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26 June 2013 paras sir thank you very much but can u please let me explain more clearly suppose building of 1000000 rs has been transfered from head office to delhi office on june 23,2013 then how would u calculate the depreciation in the books of both ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 June 2013 Total No of Days in a year =365.
Building used by HO for 30+31+23=84 days
.

Let the rate of depreciation be @ 10%.
Annual Depreciation =100000
.
Dep Allocable to HO =84/365x100000
= 23014
.
Balance allocable to Delhi Branch = 76986.
.

Bhawna Rajpal

Bhawna Rajpal (Querist)
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14 September 2014 thanks paras sir :)

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