Atin & Co., a sole proprietary concern, was converted into a Company on 1 -9-2020. Before the conversion, the sole proprietary concern had a Block of Plant and Machinery (Rate of Depreciation 15%), whose WDV as on 1-4-2020 was ₹ 3,00,000. On 1st April, itself a new Plant of the same Block was purchased for ₹ 1,20,000. After the conversion, the Company has purchased the same type of Plant on 1-1-2021 for ₹ 1,60,000. Compute the depreciation that would be allocated between the sole proprietary concern and the successor company.
A. ₹ 26,408: ₹ 48,592
B. ₹ 0:₹ 75,000
C. ₹ 75,000: ₹ 0
D. No depreciation for this year
Answer:A
Atin & Co., a sole proprietary concern, was converted into a Company on 1 -9-2020. Before the conversion, the sole proprietary concern had a Block of Plant and Machinery (Rate of Depreciation 15%), whose WDV as on 1-4-2020 was ₹ 3,00,000. On 1st April, itself a new Plant of the same Block was purchased for ₹ 1,20,000. After the conversion, the Company has purchased the same type of Plant on 1-1-2021 for ₹ 1,60,000. Compute the depreciation that would be allocated between the sole proprietary concern and the successor company.
A. ₹ 26,408: ₹ 48,592 B. ₹ 0:₹ 75,000 C. ₹ 75,000: ₹ 0 D. No depreciation for this year