DEPRECIATION

Question No. 1
Compute the written down value from the following information for the Assessment
Year 2015-16
Block of Asset Rate of depreciation(%)
WDV on April 1, 2014
Plant A,B and
15
10,40,000
C
Plant D and E
40
2,60,000
Plant F
50
70,000
Building A,B,
10
10,90,600
C and D
Building E,F
5
7,10,200
and G
Building H,I,J
100
16,90,000
and K
After April 1, 2013 the company purchases the following assets :
Assets
Date of
Rate of depreciation(%)
Actual Cost
purchase
Plant G
April 6,2014
50
6,000
Plant H
May,2014
15
18,000
Furniture
June 6,2014
10
56,000
Car
July 7, 2014
15
2,56,000
Building L
September 26,
5
7,28,700
2014
Computer
September 27,
60
90,000
2014
Copyright
September 30,
25
17,50,000
2014
The following assets are transferred
Assets
Date of sale
Sale consideration
Plant B
December 20,2014
25,10,900
Plant D
January 31, 2014
12,000
Building L
March 6, 2014
6,00,000

Question No. 2
X owns the following assets on April 1, 2013 :
Assets
Actual cost
Written Down value
on April 1, 2014
Building

Rate of depreciation(%)

A
30,00,000
13,50,000
10
B
6,00,000
2,25,000
10
C
8,00,000
40,000
5
Plant
A
1,70,000
45,100
15
B
3,10,000
68,000
15
C
30,000
7,000
40
D
50,000
31,000
40
The company acquires the following assets after April, 2014 :
Asset
Cost
Date of
Date when the
Rate of depreciation(%)
acquisition
asset is put to use
Buildin
6,00,000
May 28,2014
June 1,2014
10
gD
Buildin
4,00,000
June 6,2014
June 6, 2014
5
gE
Plant E
4,90,000
August
October 15, 2014
15
12,2014
Plant F
2,10,000
September
September
15
18,2014
19,2014
Plant G 1,50,000
September
October 30,2014
40
19,2014
Buildin
2,00,000
May 10,2014
May 10,2014
10
gF
Plant H 1,30,500
June 5,2014
July 6, 2014
15
The company sells the following assets after April 1, 2014 :
Asset
Date of sale
Sale consideration
Building A
May 11,2014
13,00,000
Plant B
May 16, 2014
20,000
Plant D
December 18, 2014
2,15,000
Plant C
December 8, 2014
32,000
Building C and January 10,2014
3,30,000
E
Determine the amount of depreciation for the Assessment Year 2015-16.