PCC Nov 2011

Originally posted by : radhika agarwal
	i got dep as 90,000/- from 4th year..........

Yup i got the same 

Yes i guess 90000 is the right answer.

Dear all,

please do not worry so much abt exam that is over. Forget accounts and concentrate on other paper. After exams, you may have a discussion.

its 90000.....fr fourth year

Working for dep is as below:

For 1st 3 years on SLM basis: (O. Cost- Resi Value @ end)/total useful life

= (12,00,000-2,00,000)/10 = 1,00,000 for each year..

so wdv at end of 3rd year= 9,00,000  (12,00,000-3,00,000)..

After Revaluation WDV of asset= 9,00,000+3,00,000=12,00,000

Also Revaluation of Residual Valu= 2,00,000+1,00,000= 3,00,000

Also remaining useful life was reassessed to 10 years.

So from 4th year using the above formula again Dep will be

=(12,00,000-3,00,000)/10 = 90,000...

As per AS 6 when there is no change in method of application of Dep it shall not be charged back on retrospective basis!!!

I agree with jayesh A Samudra dep was Rs 90000/-

and Sales Ratio is 6:14

Best of luck

Sales Ratio was 2:7 (or 4:14)