Depreciation

Accountancy

The car is depreciated annually at 100000 Acquisition cost is 600000 Residual value at 5th year is 100000 Car insurance for theft, mechanical fault,fire is 600000 What would be the treatment for the car A/C in following situation Situation 1 In 3rd year due to a mechanical fault the car is not in working condition and we have to sell the car for 100000 in mid of the financial year Situation 2 In the 4th year due to certain circumstances the car has been theft and for 6 months we were not able to find the car The theft has happened in a month of may Video Details ------------- Accounting - CA Foundation (New) Concept and Accounting of Depreciation #9. Accounting for Depreciation - Net Method

Gurukanta Singh

CA Inter

★ 20K+

06-Jul-25 22:57

266

Answers (1)

You need to compute depreciation till date of breakdown / theft. Difference between carrying amount and proceeds received is gain/loss

CA Suraj Lakhotia

Admin

08-Jul-25 16:54