Accounting treatment??

SANJAY (CHARTERED ACCOUNTANTS) (943 Points)

04 May 2012  

Dear all,

Please let me know what is the accounting treatment of following transaction.

ABC Co. Purchased a Vehicle (Car) of Rs.30,00,000/-

Loan from Bank is about 20,00,000/-

Balance Rs.10,00,000/-

Margin Money is Rs.100,000/-

R. Tax etc. Rs.250000/-

Total Payment to Dealer=Rs.13,50,000/-

Cash Discount given by dealer=Rs.50,000/-

Net Payment=Rs.13,00,000/-