Save more with 3-Yr Ad-Free CAclubindia Pro Membership. Subscribe Now!

Fixed assets entry in books

390 views

Save Share

Naveen Kumar

461 Points Posted on 11 July 2021

Dear Sir,

We have purchased mohindera pick up four Wheeler. Rs.1940000/-Paid to party by bank and Rs. 123000/- by cash party provided to bill detail as per below
invoice Value 1871000/-
registration certificate receipt 124000/-
insurance receipt 68000/-
insurance period 19 Feb 21 to 18 Feb 2022. I have passed the entry for invoice Rs.1871000/- under fixed assets please suggest entry in books for insurance and registration certificate. it's under exp ?

Replies (2)

Quick Summary

This discussion addresses the correct accounting treatment for fixed asset purchases, specifically a vehicle. The user correctly booked the invoice value under fixed assets. The query then seeks guidance on how to record the associated costs for registration and insurance. The consensus is that these costs should be treated as expenses, unless specific ledgers for insurance are maintained, in which case they should be updated accordingly.