assets used personal use

A/c entries 886 views 5 replies

Dear friends

Is interest on car loan & depreciation charged on asset(Car) which is used for personal use can be shown as expense in profit & loss A/c.

Replies (5)

One of the criteria for charging depreaciation is that asset must be used for or ready to use for business purpose and not for personal purpose.

but you did not mention for which P/L you are asking.are you asking about P/L (income and expenditure)of the personal account or for the P/L of business

it is P&l for business.

it should not be charged to the p&l a/c of the business. if charged, this shall not be allowed as expediture, it shall be added back to the profit as per the P&L a/c

Any expense on Assets used for personal purpose is not allowed in the P&L A/c of the business. Thus the interest on car loan and depreciation on the same shall not be allowed.

Hi... U can show it in business P&L only when the car is used in business for part time...

And proportionately, u should allocate interest and depreciation,,.. i.e in the proportion of time that is car used for personal purpose with car used for business purpose


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