If we dont show any Assets in balance sheet but we claim fuel expenses in p&l a.c. is it correct??
Replies (4)
Quick Summary
This discussion clarifies whether fuel expenses can be claimed in the Profit & Loss (P&L) account even if no related assets are shown on the balance sheet. The consensus is that business-related fuel expenses are permissible to claim in the P&L as indirect expenses, regardless of asset ownership. This applies whether the company owns the vehicle, rents it, or borrows it, as long as the expense is directly linked to business activities.