Friends, I want to know whether i have to record my cars used in business as current asset or fixed asset ?. What will be the entry when the customer is returning the car after the rented period ? Do i need to record the transaction as sale or service charge?
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Accounting entry in rent a car business
Replies (4)
When ur Car is being return by customer then no need to pass a journal entry. ur Car will be a fixed assets on which u ll charge depriation, ur income will be come under hire charges ( Service) as well as u ll charge service tax on it
Sir if i do so, then how can i get the physical number of cars in my hand as on a particular date.
Dear Shabaz u need to maintain accounts as per AS-19. its a nature of operating lease. u should treat ur Cars as fixed asset and charge depreciation. Hire chareges should be treated as Incomes. About no. of cars in hand in a particular date should be all the cars u have. u have just rented to partys not sold to them. ownership lies with u only.
There are plenty of good gps apps, but I didn't find a decent free app on my iPhone that shows info about car rental companies. There is a good paid version https://itunes.apple.com/us/app/car-rentals-market-app/id878633650?ls=1&mt=8, but it's too expensive for me. Does anybody know a good free version?
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