FIXED ASSET

AS 490 views 1 replies

sanil

Accountant

149 Points Joined July 2009

Hi Everybody

Case - I am Employee in a company we have car in company. It is purchased by our Managing Director and it is in his name. it is purchased by him 3 years back.

Purchased Amount 5 lacs. Purchased Date 01.01,2008. Depreciation rate is 20%

How to Account in books of Accounts of Company.

Can any One will help me.

Thank you

Replies (1)

Since Car was purchased by MD and payment is also made by him it can not be booked in company's books unless your company has option to purchase the car from your MD at current market value and then you may charged depreciation on purchase cost in books of the company.

Nayan