If a machinery has been purchase for Rs. 5 Lac on 20 April 2007 and rate of depreciation (straight line method) is 4.75%. How will the depreciation be calculated for F.Y. 2007-08 & 2008-09 under the company act?
According to theoretical concept.....Dep (SLM) = (Cost - Scrap Value)/life of asset
But practically how to calculate ?
will the depreciation be calucated @ 4.75% on the original cost for every year ?
CAclubindia
