If any purchase a new car & pays insurance charges , whether that insurance charges will be added to cost of the new car or it will be debited to P&L (with prepaid calculation) Also as we add taxes paid on purchase of car to the cost of new car, can we add insurance also.
20 August 2009
Without payment of road tax, you can ply it on road, hence it was part of cost of car. Insurance is recurring expenditure and shall be debited to P & L A/c with prepaid calculation
CAclubindia
