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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 / srinivas_accountant

All the expenses incurred during the purchase of fixed
assets should be capitalized.

car a.c 67300

to bank/cash 67300

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