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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2010 Hello all experts
I am an accountant in a pvt co. There is one case of vehicle purchase and I have confusion. Kindly help me to solve the querry. My query is:
The Director of the company has purchased a car on loan from Bank in his own name alongwith the Company as a co-Borrower.The repayment of loan is through Company's account. What will be the entry in case of company's boks ? whether Car comes in the Company's books or in the Director's books? Kindly reply I am waiting It is Urgent.
Thanks
regards
sanjay

CA KISHORE VANAMA

CA KISHORE VANAMA (Expert)
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06 October 2010 Sir,
In my view the car is his own property because the car has purchased in his own name.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2010 Sir
Thanks for reply.

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CA Amit Joshi

CA Amit Joshi (Expert)
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07 October 2010 The Car can't be part of companies books of Accounts because it is on the name of the Director and Company has its own status.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2010 Amit Ji
Thanks
I want to know about the entries to be done in the Directors books. The cheques have been given by the Co's A/c.
Kindly reply soon.
thanks
sanjay