Sir/Mam
in the individual proprietorship, we received the car as a gift bcz of high sale.... i am under tax audit, then we have to show the car in fixed assets and what entry would be done..in the book of accounts
Fixed Assets Dr
Indirect incomes cr
please correct me if i m wrong
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Assets
Replies (6)
Seems correct. The indirect income could be taken as commision income
If it is business asset, then only can be passed in your business books.
AS 10 asset definition is to be satisfy to pass the entry in your business books.
otherwise it is purely personal asset. no need to pass the entry in your business books of accounts
This assets belongs to indidual ... who is run individual propreitorship and this assets come through as a comission @ satish sir
so car is the consideration for commission income. then your entry is 100% correct.
so car is the consideration for commission income.
Car A/c Dr.
To commission income A/c
alternative 1: But the question is Car is fixed asset or not.
if AS 10 conditions satisfies then consider as FIXED ASSET.
Alternative 2: other wise car is treat as personal asset. in that case entry is
Capital A/c Dr.
To Car A/c
thanks
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