Car policy

Save Share

This query is : Resolved

AMAR (Querist)

28 November 2011 Our co provided car to his employees on following terms.

20% of Car value is paid by employee to company and company pay 100% to vendor and car purchased in name of company.

after five years car will transfer in name of employee and employee bear the transfer cost.

All running & etc exp will born by employee.

during 5years terms a installment will be deducted from employee salay as per following calculation.
Installment amount = Total car value - 45% of car value- 20% of employee contribution – divided by 60 months

Please let me know the proper entries which we book in our books.

CA pooja gupta

CA pooja gupta (Expert)

29 November 2011 while purchase car entery will be:
car a/c Dr.
To Abc Ltd.(from whom car Purchased)
on the amount which was born by the company.

you have to deduct monthly instalments from the salary of concerned employee

AMAR

AMAR (Querist)

30 November 2011 under which head we deduct his salary and how we booked salary as liability of as advance from employee

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now