WHILE WORKING DEPERICATION OF AN MACHINERY ASSET WHAT IS THE
PERCENTAGE TO BE TAKEN & FOR HOW MANY YEARS IT HAS TO BE
TAKEN.
- 1 Answers
- 3576 Views
- I also Faced
- E-Mail Answers
Answer / h.r. sreepada bhagi
The rate & method of depreciation to be taken for any asset
depends up on for what purpose it's used (This's India
specific answer)
- Whether for accounting under the Companies Act, 1956.
- Whether for Computation of taxable Income under the
Income Tax Act, 1961.
- Whether for the purpose of product Costing.
* For accounting purpose the rates & guidelines are given in
the Schedule to the Companies Act, 1956. It may be WDV or
SLM of depreciation.
* For computation of Taxable Income, rates & method is given
in the Income Tax Act, 1961 (Refer latest edition of IT Act
or Ready Reckoner - You will find rates under both IT Act &
the Companies Act. - The rates under the Companies Act may
be higher than it's mentioned in the Schedule with
justification note to the Financial Statements)
* For Costing purpose, the best method is to divide the Cost
of the Asset/Machinery (As reduced by residual value, if
any) by the estimated life of the asset to arrive at the
annual depreciation or divided it by the estimated qty. of
output over its estimated life to arrive at depreciation per
unit.
Of course there are other methods of calculating
depreciation for the purpose of costing.
| Is This Answer Correct ? | 4 Yes | 0 No |
What do you mean by Bank Reconciliation Statement(BRS)?
what is Real a/c
what is the eligible to deduct the professional tax?
Kindly tell me some journal entry of provision . 1) Make provision for Rs 100 teliphone bill on 31 March 2010. 2) teliphone bill received Rs 150/- on dated 10 Apr 2010. What will be journal entry for both case in tally.
Where is the reserve
Provident Fund a/c will comes under which account Personal, Real or Nominal A/c
Why we do depreciation?What is the main object of Depreciation?
Do you know partitioning in accounting?
If the Rent paid amount including TDS Amount and Service tax. and the company effecting for input tax what will be the entry we need to pass in books...pls help me out. 9964339964 / dgowda99@gmail.com
what is difference between bill and invoice
Reconciliation a/c in SAPM ERP
Expenditure incurred for the innovation of Guest house building is revenue nature or capital nature ??
Audit 
