How to calculate the Depreciation on Assets

How to calculate the Depreciation on Assets

Addition Deprecation calculation  

Additional Deprecation is depend on Purchases assets  during  180 days or more Purchase Less than 180 days in a year, 
If asset is put to use for less than 180 days then amount equal to 50% of the amount calculated using normal depreciating rates is allowed as depreciation.  Asset put to use on or before 5th oct of the year then 100% depreciation is allowed, otherwise 50%. 
let's understand this with following example in software. 



Click "F4" for addition entry 




Here - Block of asset on Buildings  rate 10 % 
Opening wdv - 100000
deprecation - 10000
in addition "180 days or more"     Asset put to use on or before 5th oct is 100000 (deprecation 10 % = 10000 )
in addition "less then 180 days"   Asset put to use on or after 5th oct is 100000 (deprecation 5 % = 5000 )

Here to total deprecation is 25000/= 



Hope this helps 









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