Depreciation calculation as per slm method

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.
 

Replies (8)
In SLM method dep is calculated on the cost price, not on wdv. So the dep. would be 3200 (20000*16%).
If 1 computer is purchased of 100 in 2008 (calculating depreciation as per SLM method i.e 16%) so after 6 year the value would remain 4 (100-96). In the 7th year 1 computer is purchased of 100. What will be amount on which depreciation is calculated in the BLOCK of Computer????????

I think depreciation will be calculated on prorata basis as company follows SLM method

First of all in case of SLM method their would not be any blocking system.Dep. is calculated asset wise.In the 7th year dep would be 16 Rs.
Agree with Meetali Madam
Depreciation in slm method is calculated separately on each asset
I support the answer of Mr.Aryan Prakash.....Depreciation on 2 assets purchased on different dates ll always be calculated separately.

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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