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K.V. Karthik

K.V. Karthik

CA Inter

34K+

05-May-20 21:29

9

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?

Answers (1)

Sriram Somayajula

Sriram Somayajula

Admin

06-May-20 09:21

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,