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Passing of entries in tally

A/c entries 102 views 1 replies

gaddala ramesh

166 Points Joined March 2023

bus purchased from x party amount paid for the same and sale deed is ready but name transfer not yet done, now my doubt is purchase or repair Bill's coming in the name original owner name only, here how to book purchase entry and fixed asset entry

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Rama chary Rachakonda

Master in Accounts & high court Advocate

9047 Points Joined December 2011

Accounting for Bus Purchase To accurately record the purchase of the bus in your books: -

*Purchase Entry*: Record the purchase entry in your books, debiting the "Bus" or "Vehicles" account and crediting the "Cash/Bank" or "Accounts Payable" account, depending on the payment method. -

*Fixed Asset Entry*: Since the bus is a fixed asset, record it in your fixed asset register, including details such as: -

*Asset descripttion*: Bus - *Purchase date*: Date of purchase - *Purchase price*: Amount paid for the bus -

*Depreciation*: Start depreciating the asset from the date it's ready for use Bills in Original Owner's Name For bills related to the bus (e.g., repair bills) that are still in the original owner's name: -

*Request name change*: Ask the vendor to update the billing name to reflect the new ownership. -

*Maintain documentation*: Keep records of correspondence with the vendor and any supporting documents. Accounting for Bills When recording bills in your books: -

*Accrue expenses*: Accrue the expenses in your books, even if the bills are still in the original owner's name. -

*Reconcile with vendor*: Reconcile the expenses with the vendor and ensure the bills are updated to reflect the new ownership. Name Transfer -

*Follow up*: Follow up with the relevant authorities to complete the name transfer process.

- *Update records*: Once the name transfer is complete, update your records to reflect the new ownership.

By following these steps, you can accurately record the purchase of the bus and related transactions in your books.

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