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/-
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/-
Please Reply soon.
Thanks in advance..
Margin Money Dr 1,00,000
To Bank Loan Cr 20,00,000
To Bank Cr 13,00,000
(Recording Vehicle net of discount and aditing the direct expenditure of taxes in cost of asset)