Whether we add or not the Insurance policy premium of
vehicle in asset value?
Answer Posted / h.r. sreepada bhagi
Insurance is a recurring expense year after year and it's
required to be incurred every to cover the risk associated
with using the vehicle. Insurance premium will not add to
the value of the asset itself. Hence it is not added to the
value of the asset, but charged off to P&L A/c. This applies
to all kinds of insurance premiums paid. Like this the
Annual Road Tax paid is also treated similarly.
Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
What is use of statistics in accounting?
How to create a liability for Service Tax in SAP
Recall a time when you faced a dissatisfied and aggressive customer. How did you handle it?
WHAT IS NPF IN ACCOUNTS. AN ENTRY IN BANK STATEMENT" NPF SOME NAME XXXX DR SIDE" PLEASE ANSWER WHAT IS NPF?
hi every one i just want to know the entry for bank charges dt 31.3.2016 which deducted on 02.04.2016 kindly help me thank you raj
what is the difference b/w gain and profit?
what is differnce between balance sheet of a bank & a company
What is the difference between inactive accounts and dormant account?
List out the stages of double entry system?
what is the meaning of 4X and 10X value in intraday market?
Aptitude Test Questions
What is accounting ethics?
How does accounting contribute to the community?
Wo kya cheez hai jo sal me 1bar mahine me 2 bar aur hafte me 4 bar aur din me 6 bar ata hai?
List out some of the accrued expenses and the accounts in which you would record them?