What is depreciation on computer as per companies act 2013?

Let me brief you about the nature of computers, their parts, laptops according to the companies act 2013. Basically, these are treated as non-current tangible fixed assets. This is because these types of equipment are used in business to generate revenue over its useful life for more than a year. As per the companies act 2013, the following extract of the depreciation rate chart is given for computers.

Giving you a short example, suppose M/s spy Ltd purchased 20 computers worth Rs 30000 each. As per the companies act 2013, the computer’s useful life is taken to be 3 years, and the rate of depreciation rate is 63.16%. Applying the WDV method we can calculate depreciation as follows:

So for the first year, the depreciation amount will be

Cost of computers = Rs 6,00,000 (20*30000)

Salvage value = NIL

Rate of depreciation as per the Act = 63.16%

Therefore depreciation = (6,00,000 – NIL)* 63.16%

= Rs 3,78,960

this amount of depreciation will be shown in the profit & loss account as depreciation charged to computers and the same will be adjusted in the balance sheet. The extract of Profit & Loss and corresponding year Balance sheet is shown below.