From the following particulars you are required to ascertain the depreciation admissible and other liabilities in respect of the previous year relevant to assessment year 2022-23 :

Income Tax Law (B.Com) 5th Sem Previous Year Solved Question Paper 2022

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From the following particulars you are required to ascertain the depreciation admissible and other liabilities in respect of the previous year relevant to assessment year 2022-23 :

Explanation

1. Written Down Value (WDV) at the beginning of the year:
- Plant and machinery: Rs. 2,50,000
- Building: Rs. 10,00,000

2. Addition during the year:
- Plant and machinery: Rs. 3,00,000
- Building: Nil

3. Sales during the year:
- Plant and machinery: Rs. 6,00,000
- Building: Rs. 2,00,000
- Depreciation for Plant and Machinery:
- Opening WDV: Rs. 2,50,000
- Addition: Rs. 3,00,000
- Total value: Rs. 5,50,000
- Depreciation (15%): Rs. 82,500
- Depreciation for Building:
- Opening WDV: Rs. 10,00,000
- No addition during the year
- Total value: Rs. 10,00,000
- Depreciation (10%): Rs. 1,00,000

Total Depreciation = Rs. 82,500 (Plant and machinery) + Rs. 1,00,000 (Building) = Rs. 1,82,500

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