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Depreciation on Computer Companies Act

Pankaj Arora (Learner) (3134 Points)

09 June 2018

Hi..

Please let me know how to calculate depreciation on computer as per companies act.

cost 60000/-
useful life - 3 years.

Residual value ???

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2 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 09 June 2018

Originally posted by : Pankaj Arora
	Hi..Please let me know how to calculate depreciation on computer as per companies act.cost 60000/-useful life - 3 years.Residual value ???

Residual Value of Computer is Rs. 3,000/- i.e. 5 % of Cost Rs. 60,000/- & Depreciation of every month Rs. 19,000/- i.e Rs 57,000/- divided equally in three years.

Puneet Mittal (Sr. Officer Accounts) (196 Points)
Replied 09 June 2018

Yes Residual value of computer will be 5% of purchase value i.e Rs. 3,000.

But dep. will be calculate days wise it means if you have used computer less than 365 days in first year than dep. will be calculate on the basis of number of days.

Dep. of second and third year will be same and balance dep. will be charged in fourth year.