ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Calculation of WDV value by single formula in EXcel

MANISH KUMAR (MANAGER- AUDIT) (24 Points)

07 April 2011  

"I am facing problem in Calculation WDV method by a single formula in Excel. I also want to know if an asset ( Furniture and fxiture) is purchased on 1-08-1992 for Rs. 10 crore, which depreciated @ 18.10%. How to know its WDV as on 31.03.2011. As per my calculation, Rs. 10 crore multiplied by (100-98.16) = Rs. 18, 43, 648.12.

(**98.16 is multiplying factor of 18.10% after 20 years) Is my interpretaion is correct. Need early reply as to finish audit ASAP.

Whether in WVD method daywise calculation required if an asset is purchased in any time mid of year (As we do in SLM Basis). If yes, then how to calculate WDV in EXCEL

Regards

Manish Kumar


 13 Replies

manzoor ahmed (Auditor) (479 Points)
Replied 10 April 2011

Dear Manish,

 you have provided not enough info like depreciation method, straight line or reducing balance mehtod etc, and depreciation is charged on monthly basis or yearly etc.
 but I have calculated in an excell sheet on the yearly basis and attaching the file here it might be helpful to you, furtheremore if you need any help and any audit working papers and books you can download it from my personal website its all free..

https://auditworkingpapers.weebly.com/

 

https://auditworkingpapers.weebly.com/uploads/3/0/5/2/3052525/depreciation.xlsx

 

Cost            100,000,000  
Purchase date 1-Aug-92  
       
       
Y          ear           Rate of      Depp.         Deppreciation  WDV
1992 18.10%            18,100,000    81,900,000
1993 18.10%            14,823,900    67,076,100
1994 18.10%            12,140,774    54,935,326
1995 18.10%               9,943,294    44,992,032
1996 18.10%               8,143,558    36,848,474
1997 18.10%               6,669,574    30,178,900
1998 18.10%               5,462,381    24,716,519
1999 18.10%               4,473,690    20,242,829
2000 18.10%               3,663,952    16,578,877
2001 18.10%               3,000,777    13,578,100
2002 18.10%               2,457,636    11,120,464
2003 18.10%               2,012,804      9,107,660
2004 18.10%               1,648,487      7,459,174
2005 18.10%               1,350,110      6,109,063
2006 18.10%               1,105,740      5,003,323
2007 18.10%                  905,601      4,097,721
2008 18.10%                  741,688      3,356,034
2009 18.10%                  607,442      2,748,592
2010 18.10%                  497,495      2,251,097
2011 18.10%                  407,448      1,843,648

Ravi Sharma (15 Points)
Replied 17 August 2012

Formula is :

WDV as on Date = Cost price x (1- Dep Rate%) ^ (Date of WDV Calculation - Date of Purchase + 1)/365

I hope this will help.

 

Nagesh (Asst.Manager) (23 Points)
Replied 12 December 2013

Dear Sir,

i have one more doubt that Depreciation is calculated on Gross block or WDV value  on Previous year.

 

 

dhawalguitar (student) (98 Points)
Replied 01 June 2014

How to calculate Rate of Depreciation under WDV Method: R= (1 - ( s/c ) ^1/n)x 100 Where R = Rate of Depreciation (in %), n = Useful life of the asset (in years) s = Scrap value at the end of useful life of the asset c= Cost of the asset

Dharmender (Article) (42 Points)
Replied 04 February 2015

hey plz solve this problem 

remaining life = 1 year and 215 days

cost=2800

carrying cost=524

scrap=140

what shall be the rate of depreciation under wdv method

     

 

1 Like

Tej Maheshwari (New Delhi) (24 Points)
Replied 15 June 2016

have you got correct answer of this question??

VIVEK (CA) (78 Points)
Replied 30 August 2016

= ((1)- (salvage value/ WDV  as on 31.03.2014)^(1/ remaining period of useful life))*100

Prashant Panchal (Engagement Auditor) (22 Points)
Replied 14 December 2016

use DB function, it gives same result.... 

NAVEEN CHAND (GST Practitioner) (12615 Points)
Replied 29 April 2017

           
      MONTHS    
REMAINING LIFE 19.16666667   7.166666667 215 DAYS  
COST  2800        
SCRAP 140        
           
STEP 1 0.05        
STEP 2 0.855303352        
STEP 3 -0.14469665        
STEP 4 14.46966479        
           

Haritha (CA Articles) (66 Points)
Replied 27 July 2017

Can you please give the formula more precisely.Because I tried the same but i couldnt get the correct WDV value

NAVEEN CHAND (GST Practitioner) (12615 Points)
Replied 27 July 2017

ATTACHED FILE WILL HELP YOU yes

 

THANKS !! 


Attached File : 1727343 20170727164442 dep.xlsx downloaded: 534 times

Kalyan Chakravarthi (2 Points)
Replied 29 January 2018

Thanks........

Sunil Sharma (Tax Consultant) (44 Points)
Replied 29 January 2019

  WDV Formula as per Company Act. 2013    
Original
Cost
Useful
 Life Days
Scrap
Value
Useful
 Life Year
Rate
of Dep.
Dep. Amt.
This Year
WDV
 Value
100000 =365*5 10000 =+C5/365 =(((1)-(D5/B5)^(1/E5))*100) =B5*F5% =B5-G5
             

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  





Subscribe to the latest topics :
Search Forum:

Trending Tags