Depreciation as per schedule ii

Original cost of Asset (Say Asset No.1) = 35,70,000/-         Date of Purchase = 01/05/2012

Estimated Residual Value (5%) = 1,78,500/-                       Method of Dep. = SLM

Sch II Useful life = 3 Yr

Carrying Value as on 01/04/2014 = 24,60,170/-

Sale Value of item (Say Asset No.1) = 18,66,357/-

Date of Sale = 31/03/2015

What will be Depreciation & Profit/ Loss on Sale?

 

 

 

Replies (4)

Date of Purchase: 01/05/2012; Cost: 35,70,000; Useful Life: 3 Years; Residual Value: 1,78,500

Total Depreciation: 3570000-178500= 33,91,500

Carrying amount on 01/04/2014: 24,60,170

Depreciation charged till 01/04/2014: 11,09,830

Remaining Depreciation: 22,81,670 over 13 months

Depreciation for FY 2014-15: 21,06,157

Carrying amount on 31/03/2015: 24,60,170-21,06,157=3,54,013

Sale value: 18,66,357

Profit on Sale: 15,12,344

The answer might not be correct. ;)

 

 

Rahul,

You have taken 13 months . Whay not 13 months & 1 Day?

Rahul,

You have taken 13 months . Whay not 13 months & 1 Day?

Can you provide me the rate of depreciation for current year , and how you derive it ?

I didn't take 1 day for the sake of simplicity. You can calculate for the sake of accuracy. Depreciation wasn't charged using rate, but as per the provisions, the remaining depreciation was depreciated over the remaining useful life.

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