effect on balance sheet

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2010 Q1.for a person filling ITR-4 as professional(he is a salesman),can he claim vehicle loan , EMI as deduction from his income? if yes , on which side of balance sheet or profit and loss a/c will it appear?

Q2.he has vehicle on his own name for which he has fully paid his vehicle loan EMI on which side of balance sheet will this appear?

Rahul Gupta

Rahul Gupta (Expert)
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10 March 2010 In this Vehicle can be treated as an asset for the proprietor so accordingly vehicle will be shown as an asset on the Asset side of the balance sheet and the loan amount will be shown as liabilities.

Also only the amount of INTEREST paid on loan for vehicle can be charged to P&L as Interest on loan exp. along with the depreciation exp on vehicle.

In case, of proprietorship vehicle can be at the name of the proprietor.

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 thank you sir..for ur advice..

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 but sir by which amount it will be shown as loan is repaid during current financial year?at what amount bike will be shown under asset side..and in liability side

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 but sir by which amount it will be shown as loan is repaid during current financial year?at what amount bike will be shown under asset side..and in liability side

Rahul Gupta

Rahul Gupta (Expert)
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11 March 2010 Take the value of the vehicle as asset and in liability, if loan exists then loan and balance in capital account.
If no loan exists then the entire amount as capital.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2010 ok thank you sir...

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