Road tax & insurance on vehicle



Whether road tax & insurance on vehicles to be capitalized ?

Road tax paid for 15 yrs and insurance for first yr 

 
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Nope...

Both are revenue expenditures, insurance full amount and road tax apportioned for 1 year gets debited to P&L acc.


Total likes : 3 times

 
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Executive

Vehicle license and registration fees are not included in the capital acquisition cost. They are expensed costs and should be charged to ET 56510.

 
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