sonia (chartered accountant) (28 Points)
25 May 2017
CA Rashmi Gandhi
(Chartered Accountant)
(86220 Points)
Replied 25 May 2017
Prity Agarwal
(CHARTERED ACCOUNTANT)
(363 Points)
Replied 25 May 2017
Depreciation cannot be claimed by Mrs. B, since the loan is taken in the name of Mr. A. So, the owner of the asset shall be Mr. A and depreciation shall be claimed by him.
The accounting entry to be passed by Mrs. B for paying the instalment is:
Mr. A a/c Dr
To Bank a/c Cr.
PRABIR PAUL
(*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.)
(1443 Points)
Replied 25 May 2017
Depreciation calculated on Fixed Asset.
If the car is fixed asset of Mr. A. then B can't take the deduction benefit of Depreciation. that means Mr. B can't declare this car as fixed asset.
In the book of Mr. B the Accounting entry Should Be:-
Mr. A .... Dr. (Current Asset)
To Bank / Cash...........
(Being unsecure car loan given to Mr. A)
thiruvayu
(FCA)
(155 Points)
Replied 28 May 2017
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