Dear Experts If One of Our Company Board of Director Sold His Car to Company how can i to be an account?
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Quick Summary
This discussion addresses the accounting treatment when a company purchases a car from one of its board of directors. It clarifies the necessary documentation required for such a transaction, distinguishing between the director's personal assets and the company's business entity. The core issue is identifying appropriate documentary evidence in lieu of a standard sales invoice for audit and bookkeeping purposes.
Now that you have an idea about all the documents that you will need while selling a car, let’s deep dive into it. All the documents can broadly be classified into three categories:
Car will be purchased by a company. Why would anyone need documents. Remember the business entity concept? Director is director and business is business.