Straight Line Method Depreciation

Dear Friends
How do we calculate SLM?
Asset Value 10000, Salvage 500, Net 9500, Life 3 years.
9500/3 : 3167 Depn cost per year
3167/12 : 264 Depn cost per month

This montly depn cost is same for all 12 months? Bcoz, Jan month is 30Days, 28 and 31 days for Feb & March month respectively. In this cases how do we account same depn cost for all 12 months?

Definitely it will be inaccurate for costing in Manufacturing Industry.
Replies (4)
Quick Summary
This discussion explains the Straight Line Method (SLM) of depreciation, calculating annual and monthly depreciation costs. It addresses concerns about monthly variations due to differing days in months and how to handle additional costs like customs duty on assets. The advice given is to add the extra cost to the Net Book Value (NBV) and depreciate it over the asset's remaining life.

Rs. 3,167 p.a depreciation 

Thank u so much Mr. Navern.
One more clarifications; Plant & Machinery purchased on June 2018 and started amortization for the same month onwards. After 15 months (Aug 2019) we received a notice from Customs regarding short duty valuation of particular Plant & Machinery now customs is asking to pay 75K against that FA.
Machinery Cost 1000000
Salvage Cost 50000
Net Value 950000
15 months Depreciation Cost 148,450
NBV after 15 months 851,550.
How so we add this customs Duty in the FA?
NBV after 15 months or From the date of Acquisition? From the date of Acquisition means we already closed Financial Statement, if AuG 2019 how do we calculate?

You should add 75000 to 851550 and depreciate this amount to remaining life.

Thank u so Much Manish Ji

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details