Accounting entry

journal entry 

1. new vehicle          Dr         953000

               To Seller a/c                           953000

2. seller a/c               Dr       953000

             To old Vehicle                          400000  

             To Bank loan                            553000

3. New vehicle          Dr        39500*

              To registration charges            9500

               To insurance                        30000

* this amount is also capitalised becoz expenses incurred upto the date installation 

Sushant Gurav

Your company is supposed to book only that part which has been paid or invoiced by you. Please note that if the dealer has not mentioned the expenses of Insurance and Registration then you are too not suppose to book those expenses in your books.

At the time of taking Delivery

New Vehicle A/c              Dr.

      To Dealer A/c

At the time of discharging the payment

Dealer A/c                       Dr.

     To Old A/c

     To Bank Loan A/c

Do not book anything which has not been charged to you by the dealer.

Originally posted by : sushant gurav
	sir, our company brought a new vehicle. the invoice value is 9,53,000.00 An amount of Rs. 400,000.00 is assumed paid including VAT towards exchange of old vehicle which is under the same company. An amount of Rs 553,000.00 is taken as loan from bank. AN AMOUNT OF ROUGHLY 9500.00 IS PAID AS REGISTRATION FEE TO TRANSPORT DEPARTMENT BY CAR COMPANY NOT INCLUDED IN INVOICE . AND AMOUNT OF RS. 30000.00 IS PAID AS INSURANCE NOT INCLUDED IN INVOICE. HOW TO RECORD THESE ENTRIES IN THE BOOK. KINDLY SUGGEST

First you have to write off  value of the old vehicle in your book. For this you have to pass the sell entry for old vehicle which should be the exchange value of old vehicle.

Loss on fixed assets A/c Dr (Cr in case of Profit on old vehicle) 

Depreciation Reserve A/c Dr. (if dep reserve Account maintained in books

New Vehicle (under fixed assets) A/c Dr. (from the exchange value)

              To Old Vehicle account  (WDV or actual amount according to books)

For New Vehicle purchase:

New Vehicle A/c  Dr.  553000  (Under Fixed Assets)

To Bank Loan Account  553000 (under Libility Account)

For payment of Insurance or Road Tax

New Vehicle A/c Dr 

To Bank A/c

Hope all will clear to you

rajesh

can any telling me that

what is the medical insurance payment entry from paid by the company for employee 

its exps or what