Depreciation on Computer Companies Act

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.

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.