Purchase of vehicle

This query is : Resolved

Vijay (Querist)
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31 October 2012 Dear Sir

Our Company has purchased a new vehicle . for the same we have got loam from ICICI Bank of Rs. 7 Lacs for the tenure of 5 years. ( said amt is directly paid to the dealer.)

Then how to account the said transaction .
1. How to pass entry of Vehicle Purchase
2. What treatment has to be give for the bank loan.

@VaibhavJ

@VaibhavJ (Expert)
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31 October 2012 Hi,

For Vehicle:
Asset A/c Dr. 7L
...To Creditors A/c 7L

For Loan Receipt:
Bank A/c Dr. 5L
..To ICICI Bank Loan A/c 5L

For Payment for Ase=set Purchased:
Creditors A/c Dr. 7L
...To Bank A/c 7L

Rgds//Vaibhav
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