Interested to Buy Any Domain ? << Click Here >> for more details...
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
- 4596 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?
What is recording damage inventory in books of account?
Tell me what is working capital?
Explain fictitious assets?
What is entry of Dishonored cheque issued to supplier
what is the treatment for employee contribution and employer contribution in in pf in accounts under which head??
Assuming that a firm pays tax at a 50 per cent rate, compute the after tax cost of capital in the following cases: I. A 8.5 % preference share sold at par. II. A perpetual bond sold at par, coupon rate of interest being 7 per cent III. A ten year, 8 percent, Rs.1000 par bond sold at Rs.950 less 4 percent underwriting commission.
How many accounting standards are currently published?
A firm had the following Balances on 1 January 1994: (i) Provision for bad and doubtful debts Rs 2,500 (ii) Provision for discounts on debtors Rs 1,200 (iii) Provision for discounts on creditors Rs 1,000 During the year, bad debts amounted to Rs 2,000, discounts allowed were Rs 100 and discounts received were Rs 200. During 1995 bad debts amounting to Rs l,000 were written off while discounts allowed and received were Rs 2,000 and Rs 5,000 respectively. Total debtors on 31 December, 1995 were Rs 48,000 before writing off bad debts, but after allowing discounts. On 31 December, 1995, this amount was Rs 19,000 after writing off the bad debts, but before allowing discounts. Total creditors on these two dates were Rs 20,000 and Rs 25,000 respectively. It is the firm’s policy to maintain a provision of 5% against bad and doubtful debts and 2% for discount on debtors and a provisions of 3% for discount on creditors. Show the accounts relating to provisions on debtors and provisions on creditors for the year 1994 and 1995.
What is Debit Note and Credit Note? Subsidory Books? Minority Interest? Stock recording in P&L? Outstanding Expenses, Prepaid Expenses and Examples?
my question is I am finance student I want to know which type of the question are asked by the interwier in interview.
What is the entry for closing stock value reduction?
Do you know partitioning in accounting?
What is the revenue recognition principle?
Explain what does financial statement of the company includes?
