Question
A company owns a block of assets with the following
details for the Financial Year 2024-25: • Opening Written Down Value (WDV) of the block: ₹10,00,000 • Additions during the year: ₹2,00,000 (all additions acquired before 30th September) • Deletions during the year: ₹3,00,000 (sold during the year) • Rate of depreciation: 15% per annum on WDV basis Assuming the company follows the written down value method for depreciation and applies the half-year convention for assets acquired before 30th September, calculate the depreciation charge for the year.Solution
WDV after additions/deletions = 10,00,000 + 2,00,000 – 3,00,000 = 9,00,000. Depreciation = 15% = Rs. 1,35,000.
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