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Depreciation as per sch iii

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Vignesh

Finance executive

256 Points Posted on 18 April 2018

Dear Professional,

I have A Doubt in Depreciation as per Sch II.If i purchased a computer on 01.07.2014 for Rs.10000.Deprecation rate 1-(500/10000)1/3=0.63

Depreciation till life of asset

2014-15 10000*0.63*270/360=4725

2015-16 (10000-4725)*0.63=3323.25

2016-17 (10000-4725-3323.25)*0.63=1229.6

2017-18 (10000-4725-3323.25-1229.6)*0.63*90/360=113.74

Residual Value=10000-4725-3323.3-1229.6-113.74

=608.41

Residual Value has to come Rs.500 by applying above rate but it came to to 608. what is wroung in this calculation?

Replies (1)

first year i.e. 12 months depreciation should be 10000*.63=6300 and this amount should be proportioned in the fy14-15 and 15-16 that is in ration 9:3.
14-15 - same as yours
15-16 dep. will be = (10000*.63*3/12)+(3700*.63.9/12)
16-17 dep. will be = (3700*.67*3/12)+{(3700-2479)*9/12)
17-18 dep= (3700-2479)*3/12

residual value will be 500 approx