How depreciation will be claimed

Accountancy

If we had purchased a machinery on credit of RS 100000 but 50000 paid as down-payment and rest will be paid in 10 equal installment(5000). Useful life of machinery is 10 yrs. If we maintain the books of accounts on cash basis then how the depreciation will be claimed in the books...?

sushma verma

CA Inter

★ 170

08-Mar-23 08:44

447

Answers (2)

Calculate depreciation on ₹100000 because it is computed on the cost of asset.

Anirudh gupta

CA Inter

★ 27K+

08-Mar-23 09:28

Actual Agreed Value is considered as Cost of Asset irrespective of Payment. Hence , shall claim depreciation u/s 32 on Rs 100,000

Varun Mulay

CA Final

★ 39K+

10-Mar-23 00:29