Depreciation

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sivaram

Sr. Accounts Executive

104 Points Joined August 2011

for office equipment life as per old companies Act1956 20 years but new act 2013 5 years so we have purchased office equipment on 13/02/2005 so for the current FY15-16 how I will calculate Depreciation.

Replies (1)

Bharath

C.A C.S

3983 Points Joined October 2009

HI,

As already the useful life is expired as per CA,2013, you cannot charge depreciation for FY 15-16.Whatever is the opening balance of the asset as on April 1st,2015, you have to charge it off as an expense from your opening retained earnings.