09 October 2010
Hello All Experts Kindly advise me on the entry done for purchase of car on lease. The entry is:
Car A/c Dr 65L DEaler A/c Cr 65L Dealer A/c Dr 15L Car A/c Cr 15L (on a/c of credit note recd) Bank Car Loan A/c Dr 46L Dealer A/c Cr 46L(being amt of loan) Dealer A/c Dr 4L bank A/c Cr 4L Kindly reply soon. Urgent thanks & regards sanjay
11 October 2010
First entry is OK In second entry if you received cr note for discount on car price, it is also ok In third Entry you dr car loan whereas it should be credited the correct entry is Dealer A/c Dr 46 L Car Loan A/c 46 L Fourth entry is Ok. After passing these entries, your dealer A/c will be nill & Car Loan & Car A/c will remain in books and your bank balance will be reduced by Rs.4 L.
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