My company has just bought a car. The breakdown is as below:
cost of the car = 50000
Interest = 15000
Registration fee = 500
Road tax (first year) = 1800
Please show me the correct entries in the books
Answers were Sorted based on User's Feedback
Answer / manoj kumar
car a/c..... dr Rs 50000
interest a/c ...Rs 15000
registration fee Rs 500
road tax Rs 1800
To cash a/c Rs 67300
( Being the car purchased and capitilizes exp)
|Is This Answer Correct ?||22 Yes||7 No|
Answer / pradeep gunuguntla
Car A/C ..... Dr 67300
To Cash A/c 67300
(Being the car purchased and capitilized expences)
|Is This Answer Correct ?||15 Yes||8 No|
Answer / mohan naidu .r ( accountant in
car a/c Dr - 52300
Interest a/c - 15000
To Cash/Bank - 67,300
( Being Car purchased a/c for)
Registration fee and Road tax has been added to car value
since one time occurring expenses, Interest is not one time
|Is This Answer Correct ?||7 Yes||0 No|
Answer / hemant
Car A/c 50000 Dr.
Interst 15000 Dr.
Registration fee 500 Dr .
Road Tax 1800 Dr.
To Bank/Cash 67300 Cr
( Being amt for the purchases of car and pay the charge )
|Is This Answer Correct ?||5 Yes||3 No|
Answer / srinivas_accountant
All the expenses incurred during the purchase of fixed
assets should be capitalized.
car a.c 67300
to bank/cash 67300
|Is This Answer Correct ?||1 Yes||0 No|
car a/c............................Dr 50500
(rgn fee can be added to tthe cost)
Interest a/c.......................Dr 15000
(not an element in the cost of the car)
Road tax a/c.......................Dr 1800
(Indirect xpns cant be added to fxd asset)
To Cash 67300
|Is This Answer Correct ?||0 Yes||1 No|
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