Fenil Gupta (Student) (55 Points)
17 September 2014In 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.
CA Meetali
(Practicing Chartered Accountant)
(145 Points)
Replied 17 September 2014
Fenil Gupta
(Student)
(55 Points)
Replied 17 September 2014
kaluram
(ca article)
(24 Points)
Replied 17 September 2014
I think depreciation will be calculated on prorata basis as company follows SLM method
CA Meetali
(Practicing Chartered Accountant)
(145 Points)
Replied 17 September 2014
aryan parakh
(student)
(22 Points)
Replied 18 September 2014
megha
(veerapur)
(27 Points)
Replied 24 September 2014
vinodh
(Final )
(182 Points)
Replied 25 September 2014
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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