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Sep 12, 2011 at 07:09 AM

Shift Wise Depreciation

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Hi Expert,

I have question regarding Depreciation of Asset.

We are in manufacturing company and we want the depreciation to be calculated as per the shift,

For Example in Sept'11 the machine is used only in one shift so the depreciation for that month should be as per 1 shift

in Oct'11 the machine is used for in two shift so the depreciation for that month should be as per 1 shift

In Nov'11 the machine is used for in two shift so the depreciation for that month should be as per 1 shift

How do we map the above scenario

My second question is

Asset Value = 1000 INR

Amortization amount = 999 INR

Difference = 1 INR

so now how to treat this balance at the time of Retiring the asset.

Please guide..

Best Regards,

Vivek