In X Pvt Ltd( Following SLM Method)
On 1.04.2013 computer of 10000 against which 16% Depreciation gives 1600, now value is 8400
On 1.04.2014 another computer of 10000 is Purchased , now will depreciation be calculated on 18400 or 20000 (10000+20000) ??????
i.e 2944 or 3200 ??????
PLz give your advice about it.
I think depreciation will be calculated on prorata basis as company follows SLM method
Depreciation under SLM will be calculated as follows.
machinery purchased for Rs 100000/- useful life 10 years. no residual value.
First year :- 100000/10=10000/-
Second Year:- (100000-10000) 90000/9= 10000
it follows upto year 10. and balance will reduced to zero.
01-04-2013 Computer Purchased :- 10000
31.03.2014 Depreciation @ 16% 1600
Balance as on 31.03.2014 8400
01.04.2014 new computer purchased 10000
Balance before depreciation : 18400
Depreciation @ 16% 2944
Balance as on 31.03.2015 15456
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