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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2010 Hello all experts
I am an accountant in a pvt co. There is one case of vehicle purchase and I have confusion. Kindly help me to solve the querry. My query is:
The Director of the company has purchased a car on loan from Bank in his own name alongwith the Company as a co-Borrower.The repayment of loan is through Company's account. What will be the entry in case of company's boks ? whether Car comes in the Company's books or in the Director's books? Kindly reply I am waiting It is Urgent.
Thanks
regards
sanjay

CA KISHORE VANAMA

CA KISHORE VANAMA (Expert)

06 October 2010 Sir,
In my view the car is his own property because the car has purchased in his own name.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2010 Sir
Thanks for reply.

CA Amit Joshi

CA Amit Joshi (Expert)

07 October 2010 The Car can't be part of companies books of Accounts because it is on the name of the Director and Company has its own status.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2010 Amit Ji
Thanks
I want to know about the entries to be done in the Directors books. The cheques have been given by the Co's A/c.
Kindly reply soon.
thanks
sanjay

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