Hi All,
If i had calculated the Depreciation higher than the actual (bcos of less expected life of an asset) in the previous closed fiscal years, what are the implications apply to calculate the actual depreciation in the current fin year.
Eg: Asset worth Rs 10000/-, Depreciation Rate: 10% (SLM), Expected Life: 10 Years. This is 10th Year for asset and the net book value is Rs 1000/-, now i come to know that the actual expected life is 15 Years. Meaning i had calculated the depreciation more than the actual.
Pls let me know whether my question is Relevant, if it is then pls clarify the scenario with accounting entries.
CAclubindia
