CAR INSURANCE AND ROAD TAX

Car purchased RS.4000000 insurance for car is 100000 and road tax permit is 500000
what's the journal entry
Replies (9)
first insurance paid will be capitalised as without insurance the asset cannot be ready to use
1. car insurance a/c. Dr. 5,00,000
(or insurance co. )
to Bank a/c. 5,00,000

2. road tax a/c. Dr 1,00,000
(or RTO)
to Bank a/c. 1,00,000

3. car a/c. Dr. 46,00,000

to Bank a/c. 40,00,000
to car insurance. 1,00,000
to road tax. 5,00,000
if suppose that car has bought through the bank loan then what's the entry
for eg. if loan is taken from SBI
then one additional entry is required to passe

Bank a/c. Dr (loan amount)
to SBI (loan) a/c
how can I book car as a fi
I don't get it please elaborate
I took bank loan for purchase of car and I'm running business and we are using this car for business purposes c
cost of car is RS 4000000 insurance charges 100000 Rto is 500000
can u tell the journal entries
1. bank a/c. Dr
to SBI ( lender bank) (loan) a/c
other 3 entries are same

# for further information please reply
Thanks for your information
I understood

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