If our factory is working 3 shift and total working days are 304 of factory than deprecition charge by 365 days on additions or by 304 days i9n caculation of new addition.
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Depreciation on plant and machinery
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If fixed method followed, depreciation for 365 days calculated. Otherwise proportionate amount of depreciation charged. There are contraductory about this matter. If (365-304) =61 days is public holiday, then full year depreciation charged. If it happened for stick, lock out depreciation for normal working hours charegd on depreciation account & depreciation for lock period transfer to abnormal loss portion.
If you are talking about companies act, then yes depreciation on additions would be charged on prorata basis i.e. for 304 days.
ya i am talking about depreciation as per companies act.............still not cleared whether to charge depreciation on addition by 304 days or 365 days.
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