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Depritiation

Accountancy

If an asset A Value 100rs opening value at the beginning of the year Depritiation block: Opening:80 During the year: 30 Closing: 110 So after deducting the depreciation of closing at the end of year will we consider the closing value of asset -10

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 12:24

178

Answers (12)

Can charge more depreciation than cost

CA Suraj Lakhotia

Admin

20-Sep-25 12:28

Means we can show -10 as cost of the value at the end of the year

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 12:38

CA Suraj Lakhotia

Admin

20-Sep-25 12:39

Then

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 13:09

How to treat it

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 13:10

Pls share exact question and also whether you are asking for tax or accounting

CA Suraj Lakhotia

Admin

20-Sep-25 13:24

It's not a question of book while doing Audit I asked out of curiosity

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 14:03

During audit there is a situation arised but its also related to study so I asked

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 14:04

So asset balance cannot be negative. Max depreciation will be restricted to carrying amount

CA Suraj Lakhotia

Admin

20-Sep-25 14:16

For income tax if block is negative its charged as gain to income tax.

CA Suraj Lakhotia

Admin

20-Sep-25 14:24

As per the example I have shared we will deduct 30 rs instead of 110 right

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

20-Sep-25 14:25

Thread Starter

Snehashis Mohanty

As per the example I have shared we will deduct 30 rs instead of 110 right

(Updated)

For tax you cannot deduct 30 since it's based on WDV approach. FOr accounting max - 20

CA Suraj Lakhotia

Admin

24-Sep-25 09:37