Question

14,30,700
Note : Additional depreciation is allowed on plant, machinery and electric motors used in manufacturing or
production of any article, or thing or good.
From the particulars given below calculate the amount of depreciation for the previous year ending on
(in) Actual cost of new P & M acquired on 30-9-2018 but put to use on 1-11-2018 12,00,000. The
17,00,000
Q. No. 2
31-3-2020.
Plant and Machinery 15% Block
( WDV as on 1-4-2019
depreciation @ 15% for this asset was calculated and charged to P & L account of 2018-19 but its WDV
is not included in the above WDV.
(ii) Actual cost of new P & M acquired on 31-3-2019 but put to use on 6-10-2019 7 16,00,000.
i) An asset which was earlier used for scientific research has been transferred to this block on
1-11-2019. Its actual cost in 2014-15 was 20,00,000 and till 31-3-2019 5 12,50,000 had been debited
to P & L account. The balance is being carried forward.
[Hints : 1/2 year's depreciation on asset used earlier for scientific research and no additional depreciation
on this asset ; additional depreciation * 3,20,000 ; Total Depreciation * 10,19,750, W.D.V. on 1.4.2020
40,20,250]
​

Answer 1

Answer:

Additional depreciation to be allowed at 20 % of actual cost of new plant and machinery. However, if an asset is acquired and put to use for less than 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% would be allowed in the next year.