28 November 2011
Our co provided car to his employees on following terms.
20% of Car value is paid by employee to company and company pay 100% to vendor and car purchased in name of company.
after five years car will transfer in name of employee and employee bear the transfer cost.
All running & etc exp will born by employee.
during 5years terms a installment will be deducted from employee salay as per following calculation. Installment amount = Total car value - 45% of car value- 20% of employee contribution – divided by 60 months
Please let me know the proper entries which we book in our books.
CAclubindia
