Cost 125,000.

00
Salvage 15,000.00
Useful Life 10.00 Years

Correct Formula

Period SLM WDV

1 11,000.00 23,875.00
2 11,000.00 19,314.88
3 11,000.00 15,625.73
4 11,000.00 12,641.22
5 11,000.00 10,226.75
6 11,000.00 8,273.44
7 11,000.00 6,693.21
8 11,000.00 5,414.81
9 11,000.00 4,380.58
10 11,000.00 3,543.89
110,000.00 109,989.50
Salvage Valu 15,000.00 15,000.00
Total 125,000.00 124,989.50
 Correct Formula for WDV

WDV Formula for Excel 125,000.00

r=1-(s/c)^(1/n) 23,882.08 101,117.92
R= Rate of Depreciation 19,319.25 81,798.67
S= Scrap Value 15,628.18 66,170.50
C= Cost of Assets 12,642.31 53,528.18
N= Number of Years 10,226.91 43,301.27
19.11% Depreciation Percentage 8,272.99 35,028.28
6,692.38 28,335.89
5,413.76 22,922.13
4,379.43 18,542.71
3,542.71 15,000.00
110,000.00
15,000.00
125,000.00
 Depreciation As per Income Tax

Meaning

Calculation of depreciation

Annual depreciation
charge

Value of asset

Purposes
Depreciation As per Income Tax Section 32
straight line method (SLM)

A method of depreciation in which the

cost of the asset is spread uniformly over
the life years by writing off a fixed
amount every year.

On the original cost

Remains fixed during the useful life.

Completely written off

Not applicable for income tax purposes

(Only for Book Value)
e Tax Section 32
written down value method (WDV)

A method of depreciation in which a fixed

rate of depreciation is charged on the
book value of the asset, over its useful
life.

On the written down value of the asset.

Reduces every year

Not completely written off

Applicable for income tax purposes

 Depreciation Statement As pe
Addition
WDV Value as on
S.No. Description within Sep
01/04/2016
2016
1 Plant & Machinery 2,435,450.00 235,000.00
2 Building 1,325,000.00
3 Computer & Accessories 42,752.00
4 Furniture & Fittings 24,752.00
Total 3,827,954.00 235,000.00

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P
ation Statement As per Income Tax Act

Addition After
Deletions Gross Block Depreciation
Sep 2016
145,000.00 2,815,450.00 15% 411,443.00
1,325,000.00 10% 132,500.00
12,000.00 12,000.00 54,752.00 60% 22,051.00
13,450.00 38,202.00 10% 3,148.00
170,450.00 4,233,404.00 569,142.00

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WDV Value as
on 31/03/2017
2,404,007.00
1,192,500.00
32,701.00
35,054.00
3,664,262.00