Depreciation on Car in partner's name claimed by the Partnership Firm

In a Partnership firm both the partners have purchased motor cars in their individual names, and the purchase consideration is credited to the partners current account. Can the asset be shown in the balance sheet of the firm and can depreciation be claimed on the same by the firm ??

Replies (4)
Quick Summary
This discussion explores whether a partnership firm can claim depreciation on motor cars purchased by partners in their individual names. The consensus is that if the cars are used exclusively for business purposes, they can be treated as fixed assets on the firm's balance sheet, allowing the firm to claim depreciation. However, if the cars are used for personal reasons by the partners, the firm cannot claim them as assets or claim depreciation.

Answer
If cars is used by the firm for business purposes then in BS it will be taken as Fixed assed and Depreciation can be claimed by firm ,,, but if cars is used by partners for personal purpose than no record as Fixed asset and NO Depreciation can be claimed by firm
Personal expenses cannot be claimed.

In my opinion the car cannot be recorded in the books of the firm. However, the partner can take fuel  and other maintenance expenses because he is incurring them for the business 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
Featured 04 August 2026
Chartered Accountant

KayOne Consulting

Chennai

CA

View Details
Follow