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Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022?
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Question- Books of xyz Ltd. disclose the following details: (1).W.D.V....
Calculation of Chargeable Depreciation for Assessment Year 2021-2022
Given Details:
- W.D.V. of plant and machinery on 1.4.2020 = $100,000
- Cost of new machinery purchased on 1.1.2021 and put to use = $60,000
- W.D.V. of machinery sold on 1.2.2021 = $30,000
Step 1: Calculation of Opening W.D.V.
The opening W.D.V. is the written down value of the plant and machinery at the beginning of the assessment year. It is calculated as follows:
Opening W.D.V. = W.D.V. on 1.4.2020 + Additions during the year - Sales during the year
Opening W.D.V. = $100,000 + $60,000 - $30,000 = $130,000
Step 2: Calculation of Depreciation
Depreciation is calculated on the opening W.D.V. based on the applicable rates as per the Income Tax Act. The rates for different types of assets are provided by the Income Tax Department.
Assuming the applicable rate for plant and machinery is 15%, the depreciation for the assessment year 2021-2022 can be calculated as follows:
Depreciation = Opening W.D.V. * Rate of Depreciation
Depreciation = $130,000 * 15% = $19,500
Step 3: Calculation of Chargeable Depreciation
Chargeable Depreciation is the lower of the depreciation calculated and the actual cost of the asset. In this case, the actual cost of the asset is $60,000.
Chargeable Depreciation = Minimum (Depreciation, Actual Cost)
Chargeable Depreciation = Minimum ($19,500, $60,000) = $19,500
Explanation:
- The opening W.D.V. is calculated by adding the W.D.V. on 1.4.2020, the cost of new machinery purchased during the year, and subtracting the W.D.V. of machinery sold during the year.
- Depreciation is calculated on the opening W.D.V. based on the applicable rates as per the Income Tax Act.
- Chargeable Depreciation is the lower of the depreciation calculated and the actual cost of the asset.
Conclusion:
The chargeable depreciation of plant and machinery for assessment year 2021-2022 is $19,500.
Given Details:
- W.D.V. of plant and machinery on 1.4.2020 = $100,000
- Cost of new machinery purchased on 1.1.2021 and put to use = $60,000
- W.D.V. of machinery sold on 1.2.2021 = $30,000
Step 1: Calculation of Opening W.D.V.
The opening W.D.V. is the written down value of the plant and machinery at the beginning of the assessment year. It is calculated as follows:
Opening W.D.V. = W.D.V. on 1.4.2020 + Additions during the year - Sales during the year
Opening W.D.V. = $100,000 + $60,000 - $30,000 = $130,000
Step 2: Calculation of Depreciation
Depreciation is calculated on the opening W.D.V. based on the applicable rates as per the Income Tax Act. The rates for different types of assets are provided by the Income Tax Department.
Assuming the applicable rate for plant and machinery is 15%, the depreciation for the assessment year 2021-2022 can be calculated as follows:
Depreciation = Opening W.D.V. * Rate of Depreciation
Depreciation = $130,000 * 15% = $19,500
Step 3: Calculation of Chargeable Depreciation
Chargeable Depreciation is the lower of the depreciation calculated and the actual cost of the asset. In this case, the actual cost of the asset is $60,000.
Chargeable Depreciation = Minimum (Depreciation, Actual Cost)
Chargeable Depreciation = Minimum ($19,500, $60,000) = $19,500
Explanation:
- The opening W.D.V. is calculated by adding the W.D.V. on 1.4.2020, the cost of new machinery purchased during the year, and subtracting the W.D.V. of machinery sold during the year.
- Depreciation is calculated on the opening W.D.V. based on the applicable rates as per the Income Tax Act.
- Chargeable Depreciation is the lower of the depreciation calculated and the actual cost of the asset.
Conclusion:
The chargeable depreciation of plant and machinery for assessment year 2021-2022 is $19,500.
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Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022?
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Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022?.
Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022?.
Solutions for Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? in English & in Hindi are available as part of our courses for CA Foundation.
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Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022?, a detailed solution for Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? has been provided alongside types of Question- Books of xyz Ltd. disclose the following details: (1).W.D.V. of plant and machinery on 1.4.2020 -100000 (2).cost of new machinery purchased for the production of articles on 1.1.2021 and put to use-60000 (3).W.D.V. of machinery sold on 1.2.2021-30000 (4).amount received on machinery sold on 1.2.2021 Calculate chargeable depreciation of plant and machinery for assessment year 2021-2022? theory, EduRev gives you an
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