06 January 2015
sir, one of my friend having proprietor firm purchased car by taking loan and pays the EMI from his firm account. problem is car is registered in his father name and his father is also having proprietor firm.
what is the accounting treatment in both the firms. suggest me.
06 January 2015
as the vehicle is registered in his father name, let him show as asset in his books. And show as liability towards his son.
And son has to show the loan given to his father under asset side. so in son's books the loan given to father increases every month as the EMI is being paid every month.
CAclubindia
