How should I calculate depreciation in this case

Stat Audit 4991 views 10 replies

Suman

JOB

43 Points Joined October 2007

Dear All,

Please sort out my problem of calculating depreciation in the following case:

Gross Block of machinery as on 1/04/2007 ..................................1,00,000

Purchase of new machinery on 1/06/2007.....................................10,000

The machinery is used in single shift upto 31/12/2007.

Again, new machinery was purhcased on 1/02/2008....................20,000

The machinery was used in triple shift till 31/03/2008.

Please help me how to calculate depreciation in this case??

Thanks,

Suman Sharma

Replies (10)

rajumithra.c.s.inter

student

46 Points Joined January 2008

Gross Block of machinery as on 1/04/2007 ..................................1,00,000

Purchase of new machinery on 1/06/2007.....................................10,000

The machinery is used in single shift upto 31/12/2007.

Again, new machinery was purhcased on 1/02/2008....................20,000

purchase date 1/6/7 10,000

add: dep till date 31/12/07 10000

andagain purchased

add: 1/2/08 20,000

dep 2000

depercation: total block asstes: 100000

add: till date total asstes

opening 100000

total purchse 30000

total deprctaion: 13000

CA Akshat

article

422 Points Joined December 2007

hi suman

u want answer as per income tax act or companies act?

reply me so tht can answer accordingly

CA. Anubhav Jaggi

104 Points Joined February 2008

the information provided is not complete.

please tell what is accumlated depriciation till date.?

only machine puchased on 1/2/2008 used for triple shift? or also which was purchased on 1/6/2007?

u want as per company act or income tax act?

CA. Anubhav Jaggi

104 Points Joined February 2008

Second machine:

20000*27.82%*2 months= 927

Suman

JOB

43 Points Joined October 2007

this is as per company act.

Guest

426080 Points Joined August 2012

Originally posted by :Suman
"	Dear All, Please sort out my problem of calculating depreciation in the following case: Gross Block of machinery as on 1/04/2007 ..................................1,00,000 Purchase of new machinery on 1/06/2007.....................................10,000 The machinery is used in single shift upto 31/12/2007. Again, new machinery was purhcased on 1/02/2008....................20,000 The machinery was used in triple shift till 31/03/2008. Please help me how to calculate depreciation in this case?? Thanks, Suman Sharma	"

Guest

426080 Points Joined August 2012

Originally posted by :Suman
"	Dear All, Please sort out my problem of calculating depreciation in the following case: Gross Block of machinery as on 1/04/2007 ..................................1,00,000 Purchase of new machinery on 1/06/2007.....................................10,000 The machinery is used in single shift upto 31/12/2007. Again, new machinery was purhcased on 1/02/2008....................20,000 The machinery was used in triple shift till 31/03/2008. Please help me how to calculate depreciation in this case?? Thanks, Suman Sharma	"

CA. Anubhav Jaggi

104 Points Joined February 2008

First apply full year depriciation on WDV as on 01/04/2007,the Gros block of which is 100000 as per ur query.

Then on the machine which purchased on 01/06/2007,apply single shift rate as per companies act till 31/12/2007 for 7 months and then triple shift till 31/03/2008(Assuming that it is used in triple shift after 31/12/2007).

Then on the machinery purchased on 01/02/2008,apply triple shift rate for 2 months till 31/03/2008.

Do see the rates for double and triple shift in Schedule 14 of Company Act. And all the calculation will on proportionate basis for the period for which the asset is used.and that could be in months or days.

This is the answer to ur query as per the information provided by u.