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Depreciation query

ABHIJIT MANNA (ACCOUNTANT) (447 Points)

07 August 2018

Please tell me how to calculate useful life of o fixed assets and depriciation method and if a company purchase mobile phone of Rs. 60700.00 as on 03.07.2017, software amounting Rs. 34406.78 as on 30.10.17 and Furniture of Rs. 32812.50 on 17.10.17. what will be its deprication in 31.03.2018 There were some fixed assets that had there opening balance as on 01.04.2017. Last year deprication schedules attached. Please guide me.

Thanks in advance

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6 Replies

Ashwin Kumar (168 Points)
Replied 07 August 2018

mobile phone no dep, computer software 40%, furniture 10%

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rama krishnan (12239 Points)
Replied 08 August 2018

why no depreciation for mobile phone?

Ashwin Kumar (168 Points)
Replied 08 August 2018

it does not classify under the category of asset

ABHIJIT MANNA (ACCOUNTANT) (447 Points)
Replied 08 August 2018

If you notice my attached file there were not use calculation of direct percentage like 40% or 15% where it was applicable, there were using some different deprication method using formula like residual value, useful life of the assets etc. so please someone tell me details about that.

Ashwin Kumar (168 Points)
Replied 08 August 2018

air conditioner on television will fall under the block of furniture therefore 10% , car is a separate block therefore 15%, and incase of computer the rate is 40%....(all these rates are as per income tax act). the methods of depreciation vary from company to company depending upon the location, asset purchases and so on...