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Finance - Documentation Charges

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(Querist)
01 August 2010 Hi Experts,

How should we make the entry for Documentation charges, charged by Pvt.Bankers/Financiers on Vehicle Finance.

Eg: Inv.Value-15,00,000/-
Down Payment -5,00,000/-
Finance Value - 10,00,000/-
Documentation Charges -7,500/-

Pls clarify
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CA Ujjaval Desai

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CA Ujjaval Desai (Expert)
01 August 2010 1) Assets...Dr. 1500000
To Vendor A/c 1500000

2) Vendor A/c 1500000
To Borrower 1000000
To Bank 500000

Documentaion Charges to be Capitalised

on Payment
Charges 7500
To Bank 7500

Capitalised
Assets 7500
To Charges 7500

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