How is depreciation computed
As per schedule XIV of Companies Act, 1956 how is depreciation computed?
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As per Schedule XIV of Companies Act, 1956 the company can compute the depreciation through using either Written down Value Method or Straight Line Method. The rate to compute depreciation is as well specified in Schedule XIV. If any accumulation has been made to any asset throughout the financial year, depreciation on such an asset will be computed on pro rata basis from the date of such addition or up to the date on that such asset has been sold.
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