Dear friends,
A pvt limited company has bought the following on 30 May 2015.
Furniture and fittings - Rs. 89,500/-
Desk top Computers - 62,700/-
How to compute depreciation for this?
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Depreciaiton calculation
Replies (5)
Aspeed schedule II of companies act,2013 depreciation is calculated on assets based on useful life of assets given in schedule.
As per schedule useful life of general furniture & fittings is 10 years and desktop computers is 3 years.
so, depreciation on furniture and fittings will be Rs.8,950p.a
and on desktop computers Rs.20,900 p.a
As per schedule useful life of general furniture & fittings is 10 years and desktop computers is 3 years.
so, depreciation on furniture and fittings will be Rs.8,950p.a
and on desktop computers Rs.20,900 p.a
Is it necessary to provide for 5% of cost as residual value?
No, it is not necessary. Use your judgement based on facts and circumstances. "Schedule II used the words" residual value in most cases is immaterial however generally it should not be more than 5% of original cost of asset".
is it possible to follow WDV method now? i mean can we use WDV formula for new company formed in 2015-16?
Yes, WDV option is also provided under new companies act
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