Fixed assets accounting

for downpayment

party ac - - -- - - - - - dr,

      to cashl bank

(being advance for fixed asset given)

when  fixed asset is purchased

fixed asset ac - - - - -- - - - - - - dr.

       to party ac.

       to bank ac.(loan)

(being asset purchased and loan taken)

note- bank is credited because in case of loan bank give the payment directly to dealer

when emi is paid

bank(loan) ac- - -- - - - - - dr.

       to cash

(being emi paid)

for interest due

bank interest ac - - - - - - dr.

             to bank(loan) ac.

(being interest due)

note- this amt. will be taken from bank statment

Fixed assets( CAR) a/c dr ................

to cash / bank a/c ....................................................... ( down payment).

to Loan from bank ...................................................... ( loan amount)

........................................................................................................................

Loan from bank a/c dr ...................................

to Cash / Bank a/c .................................................................................... ( EMI payment)

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Interest on Car Loan .......................................

to Loan from Bank ................................................................................... ( Interest debit during the year , take annual statement)