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A company purchased a machine for backup plan, do not used it in the year,is there is need to provide depreciation?

If yes,why?


K.V. Karthik

K.V. Karthik

CA Inter

34K+

05-May-20

69

Answers (1)

Is it ready for use? If it is ready then depreciation has to be charged. The fact that it was not used is irrelevant as depreciation is provided for reduction in value due to usage / elapse of time etc,


Sriram Somayajula

Sriram Somayajula

Admin

06-May-20

50K forums
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