Costing Standards Accounting Standards E-Forms

The Companies Act, 1956

Managing Agents (Section 324 to 377)

Section 350 Ascertainment of depreciation.

Section 350 Ascertainment of depreciation.

The amount of depreciation to be deducted in pursuance of clause (k) of sub-section (4) of section 349 shall be the amount  of depreciation  on assets  as  shown by the books of the company at the end of the financial year expiring at the commencement of this Act or immediately thereafter and at the end of each subsequent financial year, at the rate specified in Schedule XIV

Provided that if any asset is sold, discarded, demolished or destroyed for any reason before depreciation of such asset has been provided for in full, the excess, if any, of the written down  value of such asset over its sale proceeds or, as the case may be, its scrap value, shall be written off in the financial year in which the asset is sold, discarded, demolished or destroyed.