ACCOUNTING TREATMENT OF VEHICLE ON HIRE

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

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

yes its true, but can we show it as lease?

 

Yes. You can and it all depends upon the agreement only. 

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