Hw to pass a entry for car

Accounting Entries 830 views 3 replies
car show room value is 114349+registration charges 146282/ + insurance charges 36882/ total comes for 1330513/- less used car sell value 285513/- net value of car comes rs 1045000/- that much loan recd from bank of rs 1045000/- question is hw to pass entry for above and capitalize the car a/c
Replies (3)

Receipt on sale of car:

Cash/bank     Dr                                     285513

Profit & Loss  Dr                                      XXX

To Old Car                                                               XXX

To Profit & Loss                                                        XXX                                                     

Receipt of loan amount:

Cash/Bank   Dr                                        1045000

To Loan                                                                     1045000

New Car Purchased:

New Car      Dr                                          1330513

To Party                                                                    1330513

Payment to party:

Party             Dr                                         1330513

To Cash/Bank                                                             1330513

 

 

There will be 2 entries

1)Car A/C                                                          Dr.     1330513

           To Bank A/C                                                                           1330513

    Bank A/C                                                       Dr.    1045000

            To Loan A/C                                                                              1045000
 

2) Bank A/C                                                         Dr.       244513

           To Car A/C                                                                                 244513

the above are only bank entries as you have not mentioned old car book value so we are unble to profit and loss entries mentioned


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