Capitalisation of insurance expenses

Charge off to the P&L across the no of years paid for.

First year you should capitalise and from next year charged to profit & Loss A/c.

if it is included in the purchase bill and no seperate insurance bill is raised then it should be capitalised for that asset under same head

as ther is no hard and fast rule for this u can charged it to pl a/c or capitalised it the benefit as depreciation can be availed as it capitalised and as expenses as it charged to p/l a/c . Only first time expenses should be capitalised and asset can be put to use without insurance

THE AMOUNT OF THE INSUARANCE PAID HAS TO BE CAPITALIZED AS THE SAME IS THE PRICE PAID TO BRING THE VEHICLE ON THE ROAD. SIMILARLY THE LOAN PROCESSING CHARGES (IF FINANCED) SHOULD BE CAPITALIZED AS THE SAME WAS INCURRED AT THE TIME OF PURCHASE OF THE ASSETS.