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Loan on fixed assests

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This query is : Resolved

Rajendra (Querist)
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23 June 2018 Sir,

Requesting you to resolve the below query.

Nature of firm: Proprietorship

Car Purchased in the name of proprietors brother, but the loan is in the name of Proprietor & His brother( Loan taken in joint Account)

Car Loan repayment is routing through proprietors SB A/c.

Please suggest can we take the car in to books of accounts & also can we take the loans in the books of accounts.
If no, How to treat the repayment made through SB A/c.

Thank you

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 June 2018 1. Can't take car in books of account of proprietor being not the owner. Like wise,
loan also can't book in accounts since taken on joint names and no tax benefit can
be availed by the proprietor.

2. Repayment may be routed through the proprietor's drawings a/c.

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