Frequently Asked
Questions
Find Solutions to Common Issues Related to accounting-reports - depreciation charge
There seems to be an error in the depreciation calculation for my car. Can you help me understand where it is going wrong?
To troubleshoot the error in depriciation calculation on car you need to follow the steps
1 go to administration menu and open the ledger car and select the proper depriciation rate on it
for according to income tax act or according to companies act which ever you want and save
2 then go to display menu and select the depriciation method
3 select the depriciation account name and ok
4 check the opening addition and sold amount if any then press F4 to post depriciation
5 select the series and select the depriciation account and post entry
I am not able to see some of my fixed assets in the depreciation report in BUSY what could be the reason
If some fixed assets are not show in depreciation report then please check group of those assets select fixed assets. Please follow below mention steps for modification in group ledger:-
Step 1:- Administration Tab
Steo 2:- Masters
Step 3:- Account
Step 4:- Modify select master of fixed asset and then change in group of master do it fixed asset and then check in depreciation report from Display Tab.
Or check ledger of that asset if asset is sold then it also not show in depreciation chart for depreciation calculation
If still any issue please contact our Helpline No. i.e, 8282828282, Or 011-40964096
I purchased an asset partway through the financial year how will depreciation be calculated
If purchased any part of the asset during then financial year. If depends on the rule of depreciation.
In case of Income Tax Act Rule, if the purchased date is after september, or 180 days then half yearly depreciation will charge and if before 180 days then yearly depreciation will charged. This will charge on the part value of asset.
In case of Company's Act Rule then depreciation will charge on W.D.V method on number of month basis like if assets purchased on 31 December then 3 months of depreciation will charge on particular part value.
I modified my depreciation chart for the previous year How do I update it to reflect the changes in the current year
For previous year changes carried forward to the next year please follow below mention steps:-
Step 1:- Take backup first from Company Tab
Step 2:- Change financial year and select previous year Or by pressing shortcut "F11for change financial year.
Step 3:- Administration Tab
Step 4:- Change F.y.
Step 5:- Select next year
Step 6:- Press yes for carry forward balances option and then process will start.
After this all changes which is made in previous year will carry forwarded to the next F.Y.
Note:- Please take backup first then process. For carry forarwading balances "F11key will not work
How do I properly record depreciation of assets in BUSY
For proper record of depreciation for assets mention depreciation rates as per Act in fixed assets master. Please follow below mention step for enter depreciation rates in fixed assests:-
Step 1:- Administration Tab
Step 2:- Masters
Step 3:- Accounts
Step 4:- Add Or Modify if already exist
Enter name of fixed assets and select group "Fixed Assetsthen a window appear mention depreciation rate.
After enter depreciation rate go to Display Tab then Depreciation Chart and you can check Depreciation to be Charged filed
Note:- For Depreciation charges as per Company's Act enable from Accounts Module from Administration Tab
The software is charging full year depreciation for an asset bought part way through the year in BUSY is this right
If assets in purchased before September month then as per Income Tax Act provision depreciation will charged entire year. Becuase as per Income Tax Act depreciation charged on 180 days basis if before 180 days it will charge entrie year after 180 days it will charged half year depreciation.
So if your assets is purchased before month of September or 180 days then the depreciation will charged full year it is correct as per Income Tax Act
Note:- If use Company's Act then it will calculate no. of month basis on W.D.V method
I want to charge Depreciation account for all accounts together in one go. How can I do this?
If you want to charge Depreciation account for all Fixed assets masters together in BUSY you have to follow below given steps:-
Step 1: Go to the Display menu and click on the Depreciation chart option. Then click on Income tax.
Step 2: Define the Depreciation account and click on the "Ok" button.
Step 3: Press F4. A window of "Generate Depreciation account" will appear. Click on the "All accounts" option and then click on the "Ok" button.
This way, your Depreciation entry will be passed accordingly for all fixed asset accounts in one go.
How do I link my assets in the master ledger to the depreciation schedule
For link of fixed assets master ledger to the depreciation schedule in BUSY please refer below mention steps:-
Step 1:- Administration Tab
Step 2:- Masters
Step 3:- Account
Step 4:- Add, enter fixed assets name then in group select fixed assets after selection of group a window appear and ask the rate of depreciation on half yearly and yearly base. Add rate of depreciation then at the end of year apply depreciation on fixed assets as per their respective rates.
Note:- For Company's Act Depreciation rate enable option from Accounts Module from Administration Tab
I sold my car during the financial year but the depreciation amount seems off. How should depreciation be handled when an asset is sold mid-year?
Depreciation for an asset that is sold in the middle of the financial year needs to be handled differently. The depreciation expense should be calculated up until the date of sale and should be reported on the income statement as an expense. The remaining balance of the asset should be reported on the balance sheet and the difference between the remaining balance and the sale price should be recognized as a gain or loss on sale. This gain or loss should also be reported on the income statement.
What are the best practices for managing fixed assets and depreciation in BUSY
For managing fixed asset and depreciation in BUSY please follow below mention steps:-
Step 1:- Administration Tab
Steo 2:- Masters
Step 3:- Account
Step 4:- Add enter name of fixed asset and then select group as a fixed asset a window appear enter depreciation rate.
Step 5:- Go to Display Tab and then Depreciation chart all fixed assets will show with their respective depreciation rate, check depreciation to be charged filed.
This is the process of adding fixed asset and for Depreciation booking on Depreciation Chart report press "F4key for booking depreciation.
