Accounting of Motor Car at Book value.
This query is : Resolved
29 June 2011
One of My client being an Individual has started his/her business since jan,2011 & Onwards under the Proprietorship concern. He/she has purchased a Motor car before 3 years in his/her Individual name. Now such car we want to account for in his/her proprietory concern's Books as on 01.04.2011 so that he/she claim expenses related to Petrol,Repairs,Depreciation and Finance charges on Car Loan EMI Payments.Now the query is whether he can book the same at Book value i.e. w.d.v. by way of passing an entry debiting to Motor Car Account as Fixed Asset at Book value & crediting to his/her Capital Account as capital Contribution. also whether Motor car Loan from Banks can be booked as secured Loan in the same manner by debiting to capital Account & crediting to Motor Car Loan Account at outstanding amount as on 31.03.2011 as per banks repayment Schedule or not.
09 July 2011
Dear Sanjay,
1.If I take income tax view,then motor car transfered to a proprietorship firm is to be recorded at cost and not at WDV.so you record the motor car at cost.
2. Loan is in the individual name. you want to tranfer in the name of the firm. You can apply to the bank for this & get a help from there...
Regards
Abhisek tosniwal
1.If I take income tax view,then motor car transfered to a proprietorship firm is to be recorded at cost and not at WDV.so you record the motor car at cost.
2. Loan is in the individual name. you want to tranfer in the name of the firm. You can apply to the bank for this & get a help from there...
Regards
Abhisek tosniwal
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
