Addition to fixed assets

Registration fees is one time expenditure and is necessary to legally drive the vehicle and hence can be added to the cost of vehicle. However expenses on account of insurance is of revenue in nature and even the first premium is also valid for first year only. So it would be appropriate to treat it as a revenue expenditure.

@ Suraj,  i also thought that, in one my client purchsed BMW car and paid insurance , registration fees and some extra fittings, but they werecapitalised the insurance paid while purchsing the car, is ti neccessary to revise and debited to P & L a/c ?

Insurance expenses relating to F.Y. concerned should be debited to P&L & the balance will be debited to Prepaid Insurance acc*nt to be shown under Loans & advances.  This balance should be transferred to Insurance in the subsequent year.

Dear sir,

I have some queary for addition  of faxed assets

My closing balance as 31-03-2014 of Rs. 100000/- and we want to addition on fixed assets

so please sujest me  how much % applicable in Depration this year