Company balance sheet : Tangbile asset

General
1

Hello Everyone ,

please pardon this query its its silly …

I was wondering if an company purchased for 10 lakhs a tangible asset ( eg IT equipment like servers ) and assume this asset has life of 5 years . how should this asset be shown in the balance sheet .My question is

1-Will the asset value (10 L) be divided by 5 years and then shown in one Quarter final statement ?

2-Under which section in the balance sheet will this be shown Asset ( non current asset ) ?

3-how is the depreciation percentage considered for this kind of asset ?

2

hElLO tRaDeR,

  1. The assets are shown at the purchase cost less pro rata depreciation for each quarter.

  2. These are categorized as non current assets a.ka. fixed assets.

  3. Depreciation rates differ for each type of asset. Check this link for the appropriate rates:

http://www.incometaxindia.gov.in/charts%20%20tables/depreciation%20rates.htm