In the AS 6 on Depreciation Accounting,
the depreciation rate under WDV is calculated as under:
1 - (10000/100000) ^ 1/5
where,
scrap =10000
cost of asset = 100000
life = 5 years.
My question is how to solve the above equation?
Secondly, if the Cost of an asset is 10L inclusive of excise duty 2L.
What is the depreciable value of this asset if
1. Cenvat can be availed for the excise duty paid.
2. No cenvat is available.
3. 20% of excise duty can be claimed as cenvat.
thanks.
Depreciable value
1. 10l-2l = 8 lakhs
2. full 10 lakhs
3. 10l - 40000 = 960000
Hi Surya,
First part is already answered. For second part you need to take following steps to calculate nth root with a calculator.
Forex- Solve 5^(1/6)
Type 5 on your calculator and press underoot 12 times
subtract 1 from the above result
Divide by the required root power (6 in this case)
Add 1 to the above result
Press X = 12 times
and you will get the answer.
Apply these steps to solve the root portion of your problem.
Thanks,
Hi Surya,,,,
At first welcome with a new profile..
Solution has already been done by two prominent peoples on CCI.
Both are correct. What Mr. Prabhat Mittal has answered is called DIRTY POWER in financial management language. Everything to solve the power is constant except 3rd step (divide by 6 in this case).
Hope you got the answers and applied them as well.
Regards
Alok
Hi Prabhat sir & Alok bhai
Thanks for responsding to my Question.
On my calc I can 'square root' but what is 'under root'?
Further, what does 'Press X = 12 times' mean?? Is multiplication sign to be pressed 12 times?
Could you pls. type the solution 'step wise'??
regards,
surya
Forget about under root or square root. Just think it roo. lol
Both are same and i think normal calci has only one root .
Your solution is :
Step 1 : Type 5 in calci. -------------- [ 5 ]
Step 2 : Now press 12 times root in your calci. -------- [ 1.00039300638 ]
Step 3 : Now deduct 1 from your result. ------------ [ .00039300638 ]
Step 4 : Now divide with the power ( 6 here ). ----------- [ 00006550106 ]
Step 5 : Now Add 1 from result. ------------ [ 1.00006550106 ]
Step 6 : Now multiplication & equals to (=) sign press times. Note that once you press[ * & = ] then its considered as one time. ------ [ 1.30771788391 ]
Here is the result ( as we know to bring in %age form we deduct by 1. Hence your answer is 30.77%
Hope i am correct. If not then plz correct me.
Regards
Alok
thanks Alok, now I have understood.
regards,
surya.
Again u r getting formal wid me bro. Dont 4get ur promise. Chill...
All the best
CAclubindia
