Facts of the Case :
Two Assessees -
Father & Son
They purchase two vehicles on loan
Vehicles are being used for Business
Vehicles are in the name of Son..
But loans taken for both the vehicles have both father and son as co-borrowers..
Instalments for both the loans are deducted from Father's Bank Account..
Queries -
1. Vehicles should be shown as assets ONLY in Son's books of account as they are in his name?
2. Vehicle Loans should be EQUALLY DIVIDED BETWEEN FATHER'S and SON'S P&L A/c and Balance Sheets? -
a) Int on Vehicle Loans should be divided equally in Father's and Son's P&L A/cs?
b) Outstanding Vehicle Loans should be shown divided equally in both Father's and Son's Balance Sheets?
CAclubindia
