Accounting entries

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NK1976

NK1976 (Querist)
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07 January 2012 Dear Sir,

I want to know that the accounting entries about the Pvt. Ltd companies. In the month of Oct-2011 purchase Suzuki Access for Rs. 57000/- & in December-2011 purchase Motor Car for Rs.9.50 lacs in the name of director. The both of Vehicles in the name of Director not on the name of Company. The payment of 57000/- & 9.50 Lacs (EMI) made from company's bank account. What is the accounting enteries in company accounts.

Kindly suggest the same.

Thanks & Regards

(Mr. Kadam)

Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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09 January 2012 Since both vehicles are registered in the name of the director and payments are made by the company, assets can not be booked in company's book and the concerned director's account shall be debited in the books of company to the extent of amount paid by the company.