AA-54-Deprecition of Previous Years Not Charged.

Just check in shedule II that , If you not depreciated an Asset , then can you transfer depreciation to Accumulated Depreciation , if yes then you should have pass the following entries.

1st year

Depreciation A/c Dr
To Accumulated Depreciation A/c Cr
( Transfer to Accumulated Depreciation A/c )

2 nd year

Depreciation A/c Dr
To Accumulated Depreciation A/c Cr
( transfer entry)

3 rd year when you charged depreciation

Accumulated Depreciation A/c Dr
Depreciation A/c Dr
To Asset. A/c Cr
( Accumulated Depreciation & Depreciation charged)

But above entries if it is as per  schedule II of the companies Act , you should have pass above entries in the past year.

When Asset was purchase ? what is an Asset  ? , Have you taken  input tax credit ? As per section 16(3) of the CGST Act  ,you can not claim Depreciation on tax Component  if you have taken  ITC  , so you  have to consider all  these things . 

Take more Opinion  on this  

Dear All Respected Members, 

It is requested to please share your your opinion on above query.

@   Dear Veent Monga 

Can you give me  the reference, where It has mentioned , because I have not gone though Schedule II  of the companies Act in detail   ?. Also I want know which method  of  Depreciation that has to be  used  SLM or  WDV . 

Dear Veenet Monga Sir,

See Below. 

Originally posted by : Vaneet Monga
	You cant charged previous years deperication. only eligible to charged current Financial year.

Dear Veenet Monga Sir, 

Your kind response awaited on above Parsad Nilugal's question. 

Please respond at your earliest for learning process. 

Dear Veenet Monga Sir,

Please respond.

Respected Mr. Sandeep Jain, 

Your kind response awaited on above post.

Please respond at your earliest.