banner_ad

Car purchase through Hypothication

This query is : Resolved 
Profile Image

Profile Image

(Querist)
11 August 2010 kindly guide for accounting entry for car purchase through Hypothication
Profile Image

CA SMR

Profile Image

CA SMR (Expert)
11 August 2010 Since Hypothecation is just a lien over an asset agreed upon as a security towards the purchase of the car,the accounting treatment may not be affected because of its presence.More expert opinion is solicited.
Profile Image

Nitin

Profile Image

Nitin (Expert)
11 August 2010 Yes except the fact the loan amount will be shown under Secured Loans.Accounting entries;

CAR A/C X
TO DEALER X

DEALER A/C X
TO ABC BANK LOAN A/C Y(LOAN AMOUNT)
TO CASH/BANK(PAID FROM YOUR OWN END)

WHEN EMI PAID

ANC BANK LOAN A/C (PRINCIPAL AMOUNT)
INTEREST ON CAR LOAN(INTEREST AMOUNT)
TO BANK A/C (EMI AMOUNT)
Profile Image

Chupita

Profile Image

Chupita (Querist)
11 August 2010 Thanks for your prompt reply. There is loan Principal amount & Interest JV & down payment which we had paid etc....
Profile Image

Chupita

Profile Image

Chupita (Querist)
11 August 2010 Thanks Nitin to guide me... Thank you once again
Profile Image

srinath

Profile Image

srinath (Expert)
11 August 2010 i think u should disclose on the face of the accounts or in the notes to accounts regarding this hypothication
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details