Issue in as 6 & as 10

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.

Replies (7)

 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,

Prabhat Mittal

www.pace2race.com

Facebook

 

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

 

Press X = 12 times

Read more at: /forum/issue-in-as-6-as-10-240041.asp#.USooc2e3iSo

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 05 August 2026
CA associate

Arun Deepak and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
08 August 2026
International Corporate Tax Advisory

Shulke

Bengaluru

CA

View Details