Accounting treatment of the assets purchased and sold during the same year as per companies act, 2013

If any assets is purchased and sold during the same year, 1. Is there any depreciation chargeable in books as per Companies Act? 2. If yes, How will depreciation be calculated and what will be the period for depreciation?
Replies (2)

For Example you purchased an invertor on 30 sept 2014 at Rs.23,300.

life  as per co. act 2013 = 5 yr

salvage value 5% of 23300=1165

depricable amount over life =23300-1165=22135

rate of dep=(1)-(salvage value/original cost)^(1/life as per co act)

               =1-(1165/23300)^(1/5)

              =45.07%

used life during the year =182

Dep for the year 2014-15=23300*45.07%*182/365=5236

value of assets as on 31 march =23300-5236=18064

you may caluclate the dep till the day you sold assets, subtract the dep from actual cost of assets and minus it from the sale value you got the loss/profit on sale i hope it'll be helpful for you

For Example you purchased an invertor on 30 sept 2014 at Rs.23,300.

life  as per co. act 2013 = 5 yr

salvage value 5% of 23300=1165

depricable amount over life =23300-1165=22135

rate of dep=(1)-(salvage value/original cost)^(1/life as per co act)

               =1-(1165/23300)^(1/5)

              =45.07%

used life during the year =182

Dep for the year 2014-15=23300*45.07%*182/365=5236

value of assets as on 31 march =23300-5236=18064

you may caluclate the dep till the day you sold assets, subtract the dep from actual cost of assets and minus it from the sale value you got the loss/profit on sale i hope it'll be helpful for you

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