Dear All,
I wish to know how to calculate the depreciation as per Companies Act 2013 where the proprietorship business was taken over on 01/04/2018 by private limited company newly formed for the purpose of such take over.
How to calculate depreciation in case of equipment, computers purchased & used by the proprietor in earlier years now taken over by the Company?
Kindly advise.
Thanks & Regards,
Suraj Patil
Thanks Sir.
It means suppose WDV of machinery in the books of proprietor was Rs. 95000/- as on 31/03/2018 and it was taken over by Pvt Ltd from 01/04/2018 then for depreciation purpose, we will consider Rs. 95000/- and apply conditions under companies act like residual value to be considered at 5% and work our depreciation accordingly .... right? mean 01/04/2018 will be the purchase date of machinery for pvt ltd. ... right?
CAclubindia
