Depreciation

Hi tarun....your cnc machine will be merged with remaining block of machinery and depriciation will be charged according to the rate at which whole block is getting depriciated. As far as software is concerned, it is necessary to make cnc run smoothly, hence it will also be added to the cost of machinery but keep in mind the life of software will be treated same as life of machine,i.e.-if CNC has life of 10 years and estimated life of software is more then that, it will be taken as 10 years only from accounting point of view and if the life is less then that of cnc, you will have to depriciate the cost of software in that life of software itself whereas cnc will be continued to get depriciated in normal course for the remaining life.