How to calculate depriciation

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Dears ,

A psrtnership firm is taken over by the company in the month of june.2011, while preparing the account of partnership for the period april to june. & company ac for the period july to march.how to calculate depriciation for the period in both entity.

as on 1.4.2011

Computer & Accesories-   Rs.222633.
Furniture & fitting-  Rs.79786

Replies (1)

Hi Jayanta, First Calculate the Depreciation on the total asset on the desired rate (for example for the purpose of Income Tax these rates are 60% & 10% respectively) and then allocated these depreciation on pro - rata basis.

For Example,

For Income Tax Purpose :

April,2011 to June,2011 : 3 Months

July,2011 to March,2012 : 9 Months

Now,

Assets                                     W.D.V. as on 01.04.2011                                       Dep. Amt

Computer   (60%)                             222633                                                            133580

F & F          (10%)                                  79786                                                              7979

 

Now Allocation,

Dep on Computer,

Partnership = 133580 X 3/12 = 33395

Company = 133580 X 9/12 =100185

 

Dep on F & F

Partnership = 7979 X 3/12 = 1995

Company = 7979 X 9/12 = 5984

 

 


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