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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

Answer Posted / 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

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