Accounting of Motor car at Book Value

I am not sure sir, but i want to attempt so plz dont mind.

Motor car a/c                               Dr.                   (book value)

        To capital  a/c                                             (balancin figure)

        To loan a/c                                                  (loan amount due from 1st april 2011)

I am an inexperienced newbie, please recheck whatever I state.

According to the explanation of section 43(1) If the assesse being NRI or foreign company brought into India an asset for the purpose of business or profession then the value of asset to be taken into accounts would be Actual cost as per sec 43(1) less amount of notional depreciation calculated at rate in force as if the asset was used in India since the date of acquisition.

Therefore the entry should be
motor vehicle(WDV)
  To capital account

Since the asset is old therefore loan must be registered on the owners name and not the firms name therefore loan is the personal liability of the proprietor .

If the principle and interest amount is paid by the firm then it should be treated as drawings (because personal liability is being paid)

If fuel,maintenance,insurance and other expenses are paid then this should be debited in P&L A/C

Not sure on this but
At second thought if the firm/concern agrees to repay the personal liability of the proprietor  then loan a/c should be credited as a new liability has rise and capital account should be debited

Capital account
 to loan a/c

net affect could be

motor vehicle a/c dr
capital a/c dr
 To loan a/c
(If WDV of vehicle is less the the remaining balance of the loan)

or

motor vehicle a/c dr.
 to loan a/c
 to capital a/c
(If WDV of vehicle is more than the REMAINING balance of the loan)

Other case could be that firm is paying the EMI but is not taking it as its own liability
In that case loan to partner a/c can be created and the amount should be recoverable by the person