Additional depreciation u/s32

Additional depreciation on P & M can be claimed @ 20% only if the asset is used by the assessee in the manufacture of an article or thing & installed after 31st march 2005. Such asset should be P & M(other than ships & air craft). This is in addition to basic 15% available on P & M.

Very important thing about Additional Depreciation is ,

1. It should be installed in Factory

2. It should be new.

3. It should be Plant & Machinery ( Other than Ship & Aircraft)

Your solution is  as follows:

Opening                     80,000

Add Addition           3,00,000

Less   Sold             3,20,000

Gross Value            60,000

Less: Deprec.        9,000   ( 60,000*15%)

Less Add Dep.      60,000  (3,00,000*20%)

Net Block Value     (9,0000)               i.e.     (+60,000-9,000-60,000)