26 December 2016
Hello to all, I am working as an account assistant in a private limited company, our company purchased a car worth Rs. 9,73,000 in exchange of old car at 365000 and a bank loan for the rest. after 2 months company apply for its registration and paid RS. 55000 for its registration and Rs. 5000 for its vip number. please suggest me for what journal entries should be posted in tally. Waiting for your response. and also suggest me whether registration charges are capilatized or not?
26 December 2016
Yes registration charges and charges for VIP number both needs to b capitalized. If there is any insurance done for the new vehicle, then that also need to be capitalized.
CAclubindia
