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Motor Vehicle expenses write off

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23 April 2024 I am using Honda Amaze car very rarely at home or outside. Now the total maintenance expenses for the year 2023-24 have accumulated to Rs 60,000. How to write off this amount against the vehicle value? Because of minimum usage, I am not applying depreciation amount to my car.
Please advise.
Thanks and Regards.

23 April 2024 you need to expense out the maintenance expenses ie debit the P&L. In case the expense is of personal nature, then debit appropriate amount to proprietor's capital account.

Depreciation is not for you to provide or not. It is assumed that the depreciation is provided.

23 April 2024 Do you use it for business?


23 April 2024 Thanks for your replies Gentlemen. I am using the car for personal use only. Now, since both the expenses and car value are Debits, shall I make a journal in the following method:
P & L account ....DR 1,20,000
Amaze Car............CR 60,000
Car Expenses........CR 60,000

Of course this will increase my P & L account ambiguously, but my purpose is solved. Please advise me. thanks and regards.

23 April 2024 no. your purpose is not solved. what sort of entry is this?

if it is personal expense but you have included car in the assets and maintenances charges in expenses, then you need transfer both - the maintenance expense and depreciation to capital account.

23 April 2024 Mr.Nikhil, Thanks for your reply. Every year, in company accounts, depreciation @ 25% is accrued by debiting P&L A/c and Crediting Accruals account. At the end of 4th year, when the accrual is 100%, totally it is written off against the motor vehicle which makes it Zero value.
Mine is not a company account. This is a domestic account where I don't have any Capital account at all. Capital accounts are mainly for business enterprises. I wanted to make the entry based on the above discussion only. Otherwise no compulsion to do it so at all. Thanks again.



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