1. X Ltd. is engaged in manufacturing chemicals since April, 2004.

The following assets are purchased by the Company: Asset Cost Date of Purchase Rate of When the Asset Depreciation is put to use Building Computer for Office Car Plant A (new) Plant B (new) Air Conditioner for Office Air Conditioner for factory(new) Plant C 20,00,000 70,000 6,00,000 40,00,000 30,00,000 60,000 70,000 30,000 April,6, 2004 May,16, 2004 June,10,2004 April,20, 2004 September, 10,2004 June,30,2004 June,25,2004 July,20,2004 10% 60% 20% 25% 25% 25% 25% 100% April,10, 2004 May,18, 2004 June,10,2004 April,30, 2004 Oct.,10, 2004 June,30,2004 June,26,2004 Sept.,6,2004

Office air conditioner is sold on March, 31,2005 for Rs. 40,000 and a new air conditioner is purchased on April,1,2005 for Rs. 65,000. The company increased its Installed Capacity by 15%. Find out the amount of normal depreciation and additional depreciation for the assessment year 2005-06 and 2006-07. 2. X Ltd. is engaged in the business of manufacture of car airconditioners since 1986. On march,31,2002 and March,31,2003, installed capacity is 1 lakh units p.a. During the previous year 2004-05, the following assets are acquired to substantially expand the installed capacity (installed capacity on March,31,2005 is 1.10 lakh units p.a.): (Rs. In thousand) Rate of Depreciation No. of assets in the block Depreciated value of the block on April,1,2004 Additions of plant (new) during the Previous year 2004-05 Plant A Plant B Plant C Sale of old plants (one plant in each Block) Block 1 25% 5 900 6400 10 Block 2 40% 7 1710 600 2198 Block 3 60% 9 600 800 1500

Plants A, B, and C are acquired during June, 2004 and put to use during July, 2004. However Plant C is put to use during the last week of November, 2004. Find out the following: a. additional and normal depreciation b. capital gain on sale of old plant and c. depreciated value of the block on April,1,2005

3. X Ltd. Owns the following assets on April 1, 2004: Assets Plant (25% Dep.) Plant A Plant B Plant C Plant D Building (5% Dep.) Building A Building B Building C Cost of Acquisition Rs. 315000/230000/510000/100000/410500/310000/85000/Date of Acquisition 1-4-1975 10-4-1965 5-5-1971 21-5-1949 15-7-1979 10-6-1969 10-5-1986 WDVon April 1,2004 Rs. 20000/30000/25000/15000/200000/250000/50000/-

During the previous year 2004-05 it acquires the following Assets: Assets Plant E Building D Date of Acquisition 10-3-2005 10-1-2005 Cost of Acquisition 22000/100000/Rate of Depreciation 25% 5%

It sales the following assets during the previous year 2004-05 Assets Plant D Building A Building B Building C Building D Date of Sale 10-4-2004 5-4-2004 10-5-2004 5-6-2004 31-3-2005 Sales Consideration 200000/90000/1500000/200000/210000/. Expenses incurred 1000/0 0 0 0

Determine the amount of Depreciation.

4. Techno Ltd. owns the following assets on April 1, 2004: Assets Furniture Building A Building B Plant & Machinery Plant & Machinery Maruti Car WDV on 1st April, 2004 Rate of Depreciation (%) (Rs.) 20,170/15 9,00,500/10 2,10,000/20 63,55,000/25 2,05,000/40 45,000/25

During the year 2004-05, the following assets are purchased by the company:

Date of Purchase 15th September, 2004 20th June, 2004 30th November, 2004 6th June, 2004 16th June, 2004

Assets Three Calculators Plant Motor Car Patent Right Trade Mark

Cost (Rs.) 14,000/1,90,000/1,65,000/2,00,000/50,000/-

Rate of Depreciation (%) 25 25 20 25 25

Determine the amount of depreciation for the assessment year 2005-06 assuming that trade marks are put to use after 6 months and other assets are put to use within one week from the date of purchase. The new plant increases the production capacity by 12%.