Depreciation calculation ad per wdv basis

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please tell me how to calculate wdv rate for calculating depreciation(dep on wdv basis).
Replies (8)
U can calculate it by using the formula - [1- (residual value/ wdv or cost)^1/n] Where n means remaining useful life But residual value cant exceed 5%
Use tht formula and outcome will be multiplied by 100 to get depreciation rate in % terms
what if residual value is "nil".....???
Originally posted by : Sidharth Shanakr
what if residual value is "nil".....???

i think almost all assets have some residual value , anyways thats nt the issue.

coming to the point, if asset does not have any residual value then u can put any nominal amount ... be it rs.10, 100 etc depending upon value of assets . 

it seems more logical i guess

i already know the formula,but i have to know the calculation part.Ex: s= 5000, orginal cost of asset=100000, life -10 yrs
Calculating Depreciation under WDV method: 1. Original Cost 100 2. Original Useful Life (Co Act, 1956) 20 years 3. Depreciation rate (Co Act, 1956) 13.91 % 4. New Useful Life (Co Act, 2013) 15 years 5. Expired Life 5 years 6. Remaining Useful Life (4-5) 10 years 7. Accumulated Depreciation 52.71 Depreciation will not be calculated over 15 years. It will be calculated over 5 years only. Formula to calculate WDV such square root: First divide 5,000/1,00,000 : 0.05 Press under root button 12 times Subtract 1 Divide by factor, here 10 Add 1 Press (* =) 12 times After these, amount 0.7412 Now, 1 � 0.7412 = .2588 i.e. 25.88 % Here, Carrying Amount = 100 � 52.71 = 47.29 but i don't get answer
process u r doing is correct but initially u had putted wrong value there..it should be 5000/wdv...because we hv alrdy charged dep on tht assets so u should divide it by cost - accumulated dep till date.. nw try to solve it..u will get answer
Thanks for the reply jyotsna i got the anawer


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