motor vehicle

Respected all,

our firm has four partners and one of the partner has a Car in his name now i  want to show that in firm books so, plz tell me how to show that in firm books?

Car a/c Dr.

Partner capital a/c Cr.

and by making of this entry can i show all the expenses like Fuel, Repair etc.in books

thanks

Replies (3)
You cannot make all expenses into the firm's books. Some portion of expenses which should be transferred to his drawings account (personal use of car)
Expenditure relating to use of the car for professional purposes is allowable.
personal expenses are disallowed a/c to sec. 37 of IT

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