Very very urgent

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This query is : Resolved

Bhawna Rajpal (Querist)

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)

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)

26 June 2013 Completely Agree with Paras Sir.

Bhawna Rajpal

Bhawna Rajpal (Querist)

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)

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)

14 September 2014 thanks paras sir :)

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