In the books of a sole proprietor carrying on business the block of fixed assets stood at 01.04.2020 as ₹ 4,00,000. If the rate of depreciation is 15% and another machinery was purchased on 15.10.2020 worth ₹ 1,00,000 of

Computation of Depreciation for AY 2021-22 Particulars Amount (₹) Opening WDV of the Block of Assets 4,00,000 Add: Purchase of Assets in same Block on 15.10.2020 1,00,000 Total 5,00,000 Depreciation Allowable (400000 x 15% + 100000 x 7.5%) 67,500 This depreciation will be apportioned on the basis of number of days of use Particulars Sole proprietary concern Company No. of Days opening block used by the Concern 214 days 151 days A. Proportionate Depreciation on opening Block (Note1) ₹ 35,178 ₹ 24,822 No. of Days New Block used by the Concern 17 Days 151 Days B. Proportionate Depreciation on New Block (Note2) ₹ 759 ₹ 6,741 Total Depreciation (A+B) ₹ 35,937 ₹ 31,563 Note 1 Sole Proprietary Concern = ₹ 60,000 x 214/365 = ₹ 35,178 Company = ₹ 60,000 x 151/365 = ₹ 24,822 Note 2 Sole Proprietary Concern = ₹ 7,500 x 17/168 = ₹ 759 Company = ₹ 7,500 x 151/168 = ₹ 6,741