Insurance on purchase of new car

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First insurance paid on purchase of a motor car is generally capitalised as it is necessary to bring the asset into usable condition (as per AS-10). Subsequent renewal insurance is treated as revenue expenditure and charged to Profit and Loss account.

Mr. Arror , Your question is not related with this topic, I have given my opinion on your matter  in resoponse to tally entry.

Surana, Chennai

9952967237

it should be capitalised

It will be capitalised as per AS-10

any expenditure incurred before the vehicle is put to use should be capitalised

YES IT SHOULD BE CAPITALISED AS PER AS-10.

 yes, they have to be capitalised....


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