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ACCOUNTING TREATMENT OF VEHICLE ON HIRE

A/c entries 3371 views 4 replies

Srikanth Dasari

ACCOUNTANT

23 Points Joined September 2020

Hello,

One of my client is running business of renting of vehicles to GTA and he does not own any vehicles. He took 3 trucks on hire and renting those trucks to GTA.

Can I show these hired trucks as assets and If I have show these trucks in balance sheet, What sholud be shown as liabilities.

Please suggest me with accounting entries.

Thank you

Replies (4)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Can I show these hired trucks as assets...?

How is possible if it's not Your own...

Aashok Kumar Sharma

Manager - Finance and Accounts

58674 Points Joined June 2010

Raja Sir is absolutely correct. You can claim deduction for expenses incurred for hiring only in PL and that too depends on mode of payments used. Cash payment has a limit.