Snehal (Accountant) (24 Points)
04 February 2011Can anybody give me depreciation calculation as on 31.3.2011 for below:
W.D.V. of Plant & Machinery on 1.4.10 - Rs.1000 lacs
Additional purchase of machinery on 18.4.10 - Rs.800 lacs which includes second hand machinery of Rs.200 lacs
Actual production from new machinery taken w.e.f. 1.12.10.
TOTAL BLOCK OF MACHINARY :- 1800 LKS
WDV DEP :- 1000*15%=150 15% RATE OF DEPRICIATION
NEW MACHINERY :-600*25%=150 FOR NEW MACHINERY ACQ. SO 15% FOR FULL YEAR , HOWEVER USAGE LESS THAN 180 DAYS SO 10% ALLOWED
OLD MACHINERY :- 200*15%=30 CANT CLAIM ADD. DEP.
TOTAL DEPRICIATION :- 330
WDV AS ON 31-3-2011:-1470 (1000-330)
shushantsinghal
(BCOM(HONS),C.A)
(283 Points)
Replied 04 February 2011
TOTAL DEPRECIATION TO BE CHARGED IN P&L A/C WILL BE RS 285/-CRORE . ACCORINGLY THE WDV WILL BE RS 1515/-CRORE
Assuming rate of depreciation for the block as 15%
edit:and it to be used for manufacturing/production purposes
Depreciation on WDV of P&M=1000*15/100=150
For Purchased New machinery Depr=(800-200)*(7.5+10)/100=105
(as p&m is used for less than 180 days in the py)
For Purchased Old machinery Depr=200*7.5/100=15
(ADDl dep not available for old mach)
Total dep=270
wdv at the end=1530
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 04 February 2011
total dep. to be charged-270
1000 *15%=150
600 *(7.5 +10)%=105
200 *7.5%=15(as per info. u given)
total value of block=1800
less-dep. =270
wdv =1530
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 04 February 2011
| Originally posted by : Arun | ||
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Assuming rate of depreciation for the block as 15% Depreciation on WDV of P&M=1000*15/100=150 For Purchased New machinery Depr=(800-200)*(7.5+10)/100=105 (as p&m is used for less than 180 days in the py) For Purchased Old machinery Depr=200*7.5/100=15 (ADDl dep not available for old mach) Total dep=270 wdv at the end=1530 |
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Rahul
(Ludhiana)
(67 Points)
Replied 04 February 2011
Please find the attached solution
After Refering to the File ----> The WDV as on 31.3.2011 comes to 1545
Then allow the normal depreciation @ 7.5 % on second hand machinery i.e. Rs. 15
The Answer comes out to 1545-15 - 1530
Sumiti Jain
(FP)
(1364 Points)
Replied 04 February 2011
| Originally posted by : Arun | ||
|
|
Assuming rate of depreciation for the block as 15% Depreciation on WDV of P&M=1000*15/100=150 For Purchased New machinery Depr=(800-200)*(7.5+10)/100=105 (as p&m is used for less than 180 days in the py) For Purchased Old machinery Depr=200*7.5/100=15 (ADDl dep not available for old mach) Total dep=270 wdv at the end=1530 |
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CA. AMIT BHUTANI
(JOB)
(124 Points)
Replied 04 February 2011
Additional Dep is allowed only if machinery purchased for MANUFACTURING purpose otherwise normal rate shall be charged.
15% if more than 180 days used in a year
7.5% if less than 180 days used in a year
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 04 February 2011
| Originally posted by : AMIT BHUTTANI | ||
|
|
Additional Dep is allowed only if machinery purchased for MANUFACTURING purpose otherwise normal rate shall be charged. 15% if more than 180 days used in a year 7.5% if less than 180 days used in a year |
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And Dep is allowed on such additional Plant and Machinery @ 20% if used for more than 180 days otherwise 10% if less than 180 days is used
sahil
(auditor)
(42 Points)
Replied 04 February 2011
opening wdv 1000
+purchases 800
- depreciation 270*
closing value of wdv 1530
*on opening wdv 150
purchases + additinal dep 120
total 270
accoring to u all the usage of the machinery start on 1.12.2010 is the important date to decide the dep.
now the question is :-
suppose company purchase a truck , which is not working condition and send for repairs and its in the garage through out the year and not use by company , can company charge deprication on that :- acc. to all of u no
second , if company puchase a machinery , suppose additional boiler in oil industry , which they normally do , if the main boiler is not going to work they take out the main boiler and fit the new one and get there work done so this additional boiler is not in use , suppose if the additional boiler is not in use all ther year u mean to say , the depriciation cant be claim on that
again , if a genrator is purchase for the supply of electricity incase of power back up , if no power cut through out the year and the genrator had not been put to use then u cant claim depriciation .
just think twice , so according to me even if the machinery is not in use unless and until there is lock out in the industry the deprication can be claim wheather it was in use or not in use , however additional depriciation cant be claim unless and until new machinery put to use
so , the new machinery is bound to have a depriciation of 15 % for the whole year and 10% additional depricaition ..
sahil
(auditor)
(42 Points)
Replied 05 February 2011
you are very much correct but this is not always true mr. ram for eg air conditioner (just for example say though not allowable as additional dep) which is cheap in month of winters and some co. purchases them in winters but they actualy put to use them in summers. Therefore actual put to use and procurement date could be different by many reasons...
and secondly the theoratical and practicle things are some what may be sometime very much different.
CAclubindia
