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 ??
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Depreciation on Car in partner's name claimed by the Partnership Firm
Replies (4)
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
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