What is the Accounting Treatment for the CAR buy by Company Owner on Loan & Company re-pay the loan?

Cars are personal assets: Since the cars are bought by the directors for personal use, they are not company assets.

Company Repayemt of loan: When the company repays the loan, it's considered a perquisite (benefit) to the directors.

Tax Implications: The value of the perquisite may be taxable in the hands of the directors.

Accounting entries:

Loan repayment by company: Debit : Director's loan account or perquisite expenses (depending on accounting treatment) Credit: Bank/cash (for loan repayment)