Why is Abhishek Manu Singhvi’s computer priced at only Rs 163? understand the whole story

New Delhi. Recently, a part of the election affidavit of Congress leader Abhishek Manu Singhvi has come into discussion on social media. In this, the price of the computer is seen to be around Rs 163, seeing which many people are surprised. But in reality this is not the market price of the computer. The amount shown in the affidavit is the book value of the computer after depreciation, which is much less in case of equipment that is several years old.

In the list of assets in the affidavit, a value of around Rs 163 is seen recorded against computer/laptop. At first glance this amount seems very small and that is why discussion on it started. However, this amount is not the current market price of the computer but the remaining paper value as per accounting.

what is depreciation

Depreciation in accounting means reduction in the value of an item over time. For example, when a computer, laptop or other electronic device is purchased, a part of its price is reduced every year. Suppose someone bought a computer many years ago. Every year some part of its value reduces in the form of depreciation. After many years its book value remains very low.

Why the value can remain between 100 to 500 rupees

If a computer is very old then its book value in accounting may be very low. In many cases it remains between Rs 100 and Rs 500. This is the reason why sometimes the price of electronic goods appears as a very small amount in the affidavits.

Difference between actual price and book value

It is important to understand that book value and market price are different things. The actual value of a computer may be thousands or lakhs of rupees, but if it is several years old and has shown continuous depreciation, its accounting value may come down to a few hundred rupees.