Car purchase accounting treatment
This query is : Resolved
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03 November 2020
Dear Sirs,
in last FY-2019-20 our company has bought the car. we have received the invoice for Rs.62,00,000 with below details
1 assessable value 41,33,333,
IGST-11,57,334,
CESS - 909333
again we received one debit note for Rs.71,100 (RTO registration, Handling charges-60,254/- with IGST-10,848/-
Reimbursement for TCS - 62,000/-
Kindly help me out passing entries for the same.
Regards,
Lakshmana
in last FY-2019-20 our company has bought the car. we have received the invoice for Rs.62,00,000 with below details
1 assessable value 41,33,333,
IGST-11,57,334,
CESS - 909333
again we received one debit note for Rs.71,100 (RTO registration, Handling charges-60,254/- with IGST-10,848/-
Reimbursement for TCS - 62,000/-
Kindly help me out passing entries for the same.
Regards,
Lakshmana
04 November 2020
capitalise CAR under FA if it is in the name of Company or Proprietor
Pass including GST and registration debit car
CAR A/c Dr 62 Lac
Cr Supplier A/c 62 Lac
Registration CAR a/c dr 71.100
cr Cash/bank/supplier 71100
TCS TCS (grouped under current Asset) dr 62000
cr supplier 62000
Pass including GST and registration debit car
CAR A/c Dr 62 Lac
Cr Supplier A/c 62 Lac
Registration CAR a/c dr 71.100
cr Cash/bank/supplier 71100
TCS TCS (grouped under current Asset) dr 62000
cr supplier 62000
Message likes :
1 times
04 November 2020
Sorry sir. there is insurance exp 1,38,894/- and other exp 1,37,520/- whether these also need to capitalized or not sir..
04 November 2020
Dear Sir, pls let me know whether registration exp & insurance need to be capitalized or not
04 November 2020
Incidental expenses like rto, insurance need to be capitalised,
What is the nature of expenses -Other if it is incidental to registration capitalise with car value.
What is the nature of expenses -Other if it is incidental to registration capitalise with car value.
05 November 2020
sir, Other expenses also related to registration only
02 October 2021
All such one time expenses at the time of registration can be capitalized to the cost of vehicle & depreciation can be claimed.
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