Sorry, did you see the point? We have seen the rates of
depreciation.
Now, we had also discussed about the value of depreciation.
Depreciation used to be written down on value.
Sir, aren't you emphasizing too much today?
Son, I will teach this topic in such a way that your
depreciation will run inside your blood.
If you donate blood to someone, the person who will get
your blood will also say in the morning that depreciation
will run inside the written down value.
Now, I will tell you how to calculate the written down
value.
We have understood the basic meaning of WDP.
If you reduce the depreciation due to the actual cost, then
you will get the value.
Now, this is the value on which depreciation will run.
But sir, the problem here is that we make blocks of the
assets.
What do we make?
Blocks of the assets.
Blocks means that the same class of the asset should have
the same rate.
What did I say?
There was a difference in the rates just now.
For example, residential building is 5% and office building
is 10%.
Suppose I have 3 buildings and 2 of those buildings are
office buildings.
Now, I will make a block of this building.
2 blocks will be made in this building.
One with 10% depreciation and the other with 5%
depreciation.
I have a machine in which the rate of one machine is 15%
and the rate of the other is 40%.
So, how many blocks will I make? 2 blocks.
The one which will go in the block of 15% will come here.
The one which will come in the block of 40% will come here.
Blocks means the same class of the asset.
Class means that it is a plant and machinery.
But there is a difference in the rates.
So, take the same rates in the block.
Different blocks will be made.
Is the point clear?
Now, come to the calculation of written down value.
What are we studying?
Calculation of WDV.
Why are we studying this?
Calculation of WDV.
We are studying calculation of WDV because the percentages
of depreciation that we have studied are based on the value
of WDV.
So, for that, we should know what WDV is and how to
calculate it.
As I told you in the last lecture,
WDV has a cost of 100 rupees.
For example, there is a cost of 100 rupees.
I have minused the depreciation from that.
At the end of the first year,
Suppose, the depreciation was 10% of 10 rupees.
Income tax,
Suppose, it is 100 crores.
And there is an office building of 100 crores.
Check the rate on the office building.
There is a building.
In which will the office building come?
It will go in the block of 10%.
The rate of 10% will be applied on whom?
On the value of WDV.
Because it is the first year.
It is the first year of the business.
So, there is no WDV.
So, the cost.
Apply depreciation on the cost.
Minus 10 crores.
What will be its value? 90 crores.
What is this?
Now, what is the cost left?
The written down value will be left.
Such a value that has been written down.
My WDV is 90 crores.
This is the first year.
Okay?
Now, what will happen in the second year?
What is the rate? 10%.
On whom will it be applied?
It will be applied on WDV.
It is written that it will be applied on WDV.
So, what is WDV? 90 crores.
What is the rate of 10%? 9 rupees.
This is depreciation.
This is done.
Value is 81 rupees.
What is this?
WDV.
Simple.
Second year.
Is there any problem in this?
Is it a simple math?
Is there any problem?
Is this WDV?
In the first year, we took it on cost.
After that, after minus depreciation, the value will be WDV.
Then again, we have to take depreciation on the same value.
Don't take it on 100.
Now, take it on this value.
Now, what will happen in the third year?
It will go on this 8.1.
This answer will come.
Are you understanding this?
So, think about it and tell me.
If this is WDV,
So, think about it and tell me.
If this is WDV,
So, just look at this table once.
I made this.
Only this one.
This is the closing of the second year.
If this is the closing of the second year,
This is the closing.
So, what will happen in the second year?
Opening WDV.
If this is the closing WDV,
Closing means?
Do you understand this much?
If this is the closing WDV, then what will happen?
Opening WDV.
What did I do in the opening?
I did depreciation minus.
So, it came to the closing.
Suppose, if I buy an asset,
So, what would happen in this?
It would be added.
What would be added?
That WDV.
Whose WDV?
Sir, in this case,
Because there is only one asset,
So, there is only one asset.
But, because we talk about blocks,
So, you have to take the WDV of the whole block.
There are different assets,
Like, I took the example of 15% and 40%.
In this 15%, the whole block,
Its opening WDV.
Minus depreciation,
It will come to the closing.
What to do? How to do?
Did you understand this point earlier?
Let's explain this a little more.
Don't worry.
Brother has come.
He is giving a challenge.
He will explain and go.
Son, I will explain like this.
You will also say,
It was fun.
Son,
In life,
Difficult things are found
by putting effort.
This is the concept of PGPP, friends.
It will be useful in your practical life,
If you do business.
If you open a shop,
Then it will be useful for you.
If you do any good business,
Then it will be useful for you.
If you go to do a job in a company,
Then the Lala,
Who will make his books of accounts,
When he will do his income tax calculation,
Then who will do the calculation?
You will do everything.
You should know these things.
What to do?
How to do?
What to plus?
What to minus?
Nothing is so difficult.
If you do one or two questions by hand,
Your answers will come out like a fritter.
There is no problem in this.
I am explaining to you on a basic level.
That's why you are feeling like this.
But my whole effort is that
I should not leave any point in this.
It should not happen that
Some children do not understand.
This is my effort.
Okay, sir.
Friends, like the sun,
Every person wants to rule the whole world.
Who does not want?
You do not want to be a king?
Our director does not want to be a king?
Who does not want to be a great person in this world?
Who does not want to spread his light on this earth?
Who does not want to wave his flag?
But sir, should I tell you one thing?
The thought that comes to mind when you see the sun,
If you want to give light like the sun,
Learn to burn like the sun first.
Learn to work hard, sir.
Work so hard that the concept
Starts running in your blood.
Even in sleep, if someone asks you
What is depression?
How much percent does it take?
And what does it depend on?
You should know.
Sir, work hard.
Burn yourself with hard work.
Never be afraid of hard work.
Sir, you have hard work, what else do you have?
We are not from a big background.
But yes,
If you come from a bigger background than us,
Then it will be fun in life.
That's it.
Do not take tension.
Look at this.
I am saying in 5 minutes,
You will understand everything.
Look carefully.
Come on.
Come on guys.
Come on.
Again,