Ref: Q6 of MTP Aug 2017 series.
Why is depreciation on vehicle provided for 6 months in adjustment for computing FMP after calculation of average profits.
Please reply.
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Final-FR- Goodwill valuation- FMP
Replies (16)
What is date of purchase vehicle... Is that in middle of year... In that case u hv to deduct 6 months depreciation... Bcz in future depreciation is for the year... In average profit only 6 months depreciation is provided..
in avg profit depn charged only in lastcyear because that is when asset was purchased. only 1/4th of half year depn is reflected in avg profit. but in future full depn will be needed na
Didn't get u bro... When is vehicle purchase date... And u urself give answer... Then qery raised??
vehicle purchased in middle of last year.
Already told that may be the case... From next year full year depreciation is to be charged that's why 6 months depreciation is charged in FMP
ok. another doubt in same question is that they have taken 50% rectified profit in computing avg capital employed, then why they have not taken rectified prov for tax in liabilities?
Hey i hv not that question... So can't reply ur query
give your mil ID
While calculate Avg. Cap. Employed,1/2 of C.y profit deducted from Total Cap. Employed
Hmm for calculating Average capital employed, 1/2 cy profit deducted
yes but why they haven't considered rectified provision for tax when calculating capital employed?
Attach screenshot of problem....
I am using mobile app, can't find a way to attach. can you find the MTP online? Aug 2017 Series.
Mail me at rash.0903 @ gmail.com
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