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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

Thank you

Answers were Sorted based on User's Feedback



My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

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

My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

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

My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

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
occurred

Is This Answer Correct ?    7 Yes 0 No

My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

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

My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

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

My company has just bought a car. The breakdown is as below: cost of the car = 50000 Interest ..

Answer / ali

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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