Car purchase accounting treatment

This query is : Resolved

Lakshman murthy (Querist)
Follow

03 November 2020 Dear Sirs,

in last FY-2019-20 our company has bought the car. we have received the invoice for Rs.62,00,000 with below details
1 assessable value 41,33,333,
IGST-11,57,334,
CESS - 909333
again we received one debit note for Rs.71,100 (RTO registration, Handling charges-60,254/- with IGST-10,848/-
Reimbursement for TCS - 62,000/-

Kindly help me out passing entries for the same.

Regards,

Lakshmana

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

04 November 2020 capitalise CAR under FA if it is in the name of Company or Proprietor

Pass including GST and registration debit car
CAR A/c Dr 62 Lac
Cr Supplier A/c 62 Lac

Registration CAR a/c dr 71.100
cr Cash/bank/supplier 71100

TCS TCS (grouped under current Asset) dr 62000
cr supplier 62000

Message likes : 1 times

Lakshman murthy

Lakshman murthy (Querist)
Follow

04 November 2020 Sorry sir. there is insurance exp 1,38,894/- and other exp 1,37,520/- whether these also need to capitalized or not sir..

Upgrade to CAclubindia Pro. Subscribe Now!

Lakshman murthy

Lakshman murthy (Querist)
Follow

04 November 2020 Dear Sir, pls let me know whether registration exp & insurance need to be capitalized or not

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

04 November 2020 Incidental expenses like rto, insurance need to be capitalised,

What is the nature of expenses -Other if it is incidental to registration capitalise with car value.

Lakshman murthy

Lakshman murthy (Querist)
Follow

05 November 2020 sir, Other expenses also related to registration only