Can a Depreciable capital asset which is used for the purpose of business can be converted into stock in trade?
if yes then how it is calculated?
thanks in advance.
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Depreciable capital asset
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Yes. depreciable asset can be converted into stock, u have to consider the market value at which it should be transferred to stock.
As per IT act : Such amount shall be reduced from the block of assets ( same procedure as if it were sale of fixed asset).
For accounting : Difference between conversion value and wdv is treated as loss or gain on sale of asset
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