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Deprecation

28 February 2020

Sir, we have purchased mobile phone where is bill of Rs 9000 but we paid actual 8500 so please suggest in which amount I am claim deprecation in Rs 8500 or Rs 9000

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11 Replies

VIPINKUMAR K TIWARI (Financial Professional) (196 Points)
Replied 28 February 2020

The amount you have capitalised the mobile phone.

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 February 2020

@ Mr Naveen Kumar.,

What amount You account against the purchase of phone...?!

Naveen Kumar (629 Points)
Replied 28 February 2020

Sir, Rs 8500

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 February 2020

Then You will be taken the value to depreciation...

But,

Book into the accounts as per bill value and balance will account under discount or misc.income...

1 Like

Naveen Kumar (629 Points)
Replied 28 February 2020

Thank you very much Respected sir

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 February 2020

You are most welcome...

Mohanraj J (1217 Points)
Replied 28 February 2020

Dear Sir,

We are in Automobile components Manufacturing Industry. We need to know that Straight Line Method Depreciation calculations taking by actual used days (ex. 28 days for Feb, 31 Daya for March & 30 days for April) instead of fixing monthly equal value. Shall we follow this? Is there any provisions/notifications/restrictions for this?

Further, we need to know minimum how much amount can we consider to account as a Fixed Asset?

Thanks,

Mohanraj

Chennai

9443599767

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 February 2020

Are You Company or Proprietary or Partnership...?

If You are proprietor / partnership then You can depreciate as per income tax act...

If You are company them depreciate as per company's act...

1 Like

Mohanraj J (1217 Points)
Replied 28 February 2020

Our company is Pvt Ltd. What am exactly want to know that SLM Depn calculations to be accounted for actual used days instead of monthly fixed equal Depn cost. What is ur opinion? Most of the companies are usually following which calculations (actual used days or monthly fixed equal Depn cost)?

Kapadia Pravin (17264 Points)
Replied 29 February 2020

@ Naveen Kumar
I presume you bought Mobile in cash . No problem you book bill Value 9000/-.

Even if you have paid 8500/- , in books you have to consider 9000/- only.

Now take the side of situation...
What will you book if bill is 9000/- but you paid 10000/- ? Obviously 9000/- or you will return old bill and ask for a new bill of 10000/- .

it's a GST invoice ?? or kachcha bill ??