31 December 2010
Initial costs at the time of acquisition of FA, should be capitalised e.g. insurance, registeration, accessories etc. The entry would be:
Vehicle Account Dr. 215000/- To Car Dealer A/c 215000/- (if Car dealer is doing insurance)
if you are paying insurance separately to insurer then pass two entry: 1. Vehilce A/c Dr. 2 L to Car Dealer A/c 2 L 2. Vehicle A/c Dr. 0.15 L to Bank A/c 0.15 L
CAclubindia
