Financial reporting

The leasehold property Acquired on 1-4-2000 and at the B/s date the lease has further six years to run. The cost Should be Written Off over the term of the lease by equal anuual charges . To date 7000 per annum had been written off.

Leasehold property in B/S date as on 31-3-2010 : 1,60,000

Less:Dep                                                                            70,000

                                                                                                                90,000

please anyone explain me this part 

for ur inf... this problem is MPV (fifth edition 2011) 

page no.363

problem No. 33

Replies (3)
total lease period = 16 years counting from 1.4.2000. So as on b/s date 10 years has already been over and 7000 p.a had been written off. Add back old depreciation and From nw we have to written off by equal annual charges. Term is 16 years. In wn#3 its 10/16, not 10/26. Hope it clarified now.
apply new method equal annaul charges w.r.e.f 1.4.2000.. Apply AS6

superb bayaa

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