DebbarMa

NbMe -

George bT tDel)
Deponinment . Com Sam-1
Assanman on Shoo Nola o 0h Depre tiotou.
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DteDate12npe
Page

TiMe 5 00 PM
DEPRECIATTON
Wha- is Depreciadion ?
Depmecia hon i oluhineel au lke reduekisn o oeomdd
Cest a s e d a d s e in a kydlzMAti Manne
0
UnH t Valu aasLtt belone Zam
qasMet.
n a i o e so itkbai valuu
buildig, Funue
An tsoanpl s6ised aneta ame Alaud i u bny
c quipmunl-, Machimemti.
Lptephb thc Canat "he olymwakzel a
lt value n and apprettnliLih hnda.

toammpu uck puclosed ma Company

-
A
Ite Aopuiel wage he
R s 1.00,De0 and dipeetali h
tue kis 5yeoOT Thebusiues& uight
aMet ndin dypreotion Aapeuse
o o eNamm

L o a pesad s S e S

Mehode CAcula tiua Depeciation

Memedt ComMOnl Wed to

Thene
here e +haee
Calculali depgeCiatien Thoyove

1.Snaaht Lin Mehed

Unt Droduetion eAh od
Meted.
8. Doubl dickinin balante
Lalcnla
Ihre Main inpul ore aeauree lo
dupecia tion whichk
This is t paaiad OVe
4 elelKe 0.edixed odsetio
OngankSatioh
s Vsel te, ke ixe
be prrddutkive. yond oConthue
03etAo no louax Cost-ekhativa
pmahbn
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Doate 12- 92o
Page

2.Salvage Nelu Post - Uelul }e o l

eooA e CompanM My COndiolur Sa
o aredue e amsu

and prporakitonSelup p a s
NE producbien Mehod needs e numloer
Aake a
0unitS l e duroina pmdueti on LeS
0OR at eash type e deprecdalon Mah6dl u dateu

pas b Depreciation
taight-line depreciahon Ma4hod '

s Smples Mao o all. J Rvoives

Sipla allocaon o an 2ven orab o dseciaubn

oMa
Anua Depmeeiakou Pspene a (Assets lost
RAidual valu )/ uleGul Ute l 0Me.

Eompk-dupose a ManuhatuCumina Compam

Purchaa2s aMathimema fo Rs. 100b00 and d
ound
Uuehul tke Mathiw TR b yeem
Hheidead valu te Machiemis Rs 20,600

Aa Dpoetalipn pemi
.(1.00 b00 20.D00)1
=Ks 8-OD
The Company lan daK K&ooo as t
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Date 12 15
Page

Uht 0 oduction Mahool

Mlkoel
a wosbtp pouss, UntiAL SAoigut Ru
eaual iepeuue r a n _ a addanad
o aath
Hen MaMy dA MLALsd
t tpooluted ThsaKlanmenl
a pmdunH0 Cuu, Hente
NTy e u l in akeloy
Ia Calulaten is bad n outpu Capabili

The leps o Hou

der4 Caleuti par wit dmicia
Depmecatou =(Asset cost-Residua value )
e unit

daR Caleulat tatal depseiakhen eacluad

n podueed.
dupre.cdaHon
To-la Deeiadon 2oprusePer unit

Abe Company puathale a printina

Exampla u0,000 wih o
Rs
preso pminE u a s o
48000 D Unisad a s i d a valu
wa tle o
Ks y,TOD IE poini U606luans
(40, DoO-oo)|1860Do
e p 1 :2ouniEDArLeiaiou
=Ks,0.2

2 To depmeeahon pense

Rs.&o0
Aopeusa is
Rs. &TD
S,4 teta Dprre ciaHon uniE
Dnte paa
which a accounttol

appurS otutume 0wtpu TUns

 CIASS AL

Date 1211p6
Page

9 Doub DeclminA Malhod

t tu two LomMon Me4hods

o
is DW

aied asutsi is a n acLelurali

dAetodn Mhd As the namme Suo2ts
Counr Lsp2mle

otMla
DepmeeiHen 2x SAraigh liue deseeclohon pemtaut

Pmaol,
Cost n l 0eti oclumuati4
ook ValuwL = -

odupmuakion
Examplr On April,i,201, Compan X
PurthAad on Laupmeul hor 60,00o s
pee to have waw tte ye, T
olalonoe val f s loTDCo mpany Canddrs
dupmahsn »pLsa an I t nonst who
MOMth. Calculatr d eeinHo epnas
o 1 Q 9 , ot y wina o dauliulua boan

Useul uta

Depreciot on boT 2013 =ks (toooo- 30.000)x 4 0% x

Rs28,00Ob
Depreiatlon t 201 K(o00-stTD 285To)x
o eo x Rs. 6, &od,
Acce ulig nrm Demtation eso pemss A