Insurance on vehicle

Yes you can add this insurance (first time at the time of purchase of new vehicle) as fixed assets.

If you have received discount of Rs. 25000/- (10000+15000), you have to reduce fixed assets (vehicle) cost also.

insurance of asset will not be included in cost of asset

if you have received any discount it will reduce your cost of asset

Originally posted by : Harpreet
	Yes you can add this insurance (first time at the time of purchase of new vehicle) as fixed assets. If you have received discount of Rs. 25000/- (10000+15000), you have to reduce fixed assets (vehicle) cost also.

Agreed.

Originally posted by : Harpreet
	Yes you can add this insurance (first time at the time of purchase of new vehicle) as fixed assets. If you have received discount of Rs. 25000/- (10000+15000), you have to reduce fixed assets (vehicle) cost also.

insurance is never an capital expenditure

agreed Mr.harpreet statement.

KIND ATTN: Mr. Future CA

Pls suggest me that why everyone follows the treatment of following and pls read relevant AS:

You bought a aircondition worth Rs. 20000/- from A and Stablizer worth Rs. 2500/- from B and the same get installed by from C. Pls make the journal entry in books of accounts with relevant AS or treatment of accountancy. I will appreciate your right answer on the same.

Regards,

Harpreet

Insurance payment at the time of Purchase of new asset would be Capitalised.

At the time of purchasing vehicle, Insurance is mandatory now a days.

WHile at the time of renewal of that insurance, it would be considered as revenue exp.

Originally posted by : CA Chintan Vyas
	Insurance payment at the time of Purchase of new asset would be Capitalised. At the time of purchasing vehicle, Insurance is mandatory now a days.   WHile at the time of renewal of that insurance, it would be considered as revenue exp.

Agreed.