Hi
I have purchased one asset on 1.4.2006 with value Rs.100.
Useful life 10 years, depreciation calculated @ 5%
Accumulated depreciation till 31.03.2011 will be Rs.25.
As on 01.04.2011 i have to revised 1. APC value to 150 and 2. useful life to 8 years. the upward calculation on APC should go to Reserve account.
As i am changing opening balances only and do not want to give deoreciation change amount to hit earliear years in profit and loss account that means want to have only prospecive effets.
So my opening accounts will be
asset 150
accumulated depreciation : Rs.25
reseve account:(150-100) Rs.50
and depreciation henceforth will be Rs.(150-25 accumulated)/3 years (8 years new- 5 already expired)
Please guide me ...