Car purchase through Hypothication
This query is : Resolved
11 August 2010
kindly guide for accounting entry for car purchase through Hypothication
11 August 2010
Since Hypothecation is just a lien over an asset agreed upon as a security towards the purchase of the car,the accounting treatment may not be affected because of its presence.More expert opinion is solicited.
11 August 2010
Yes except the fact the loan amount will be shown under Secured Loans.Accounting entries;
CAR A/C X
TO DEALER X
DEALER A/C X
TO ABC BANK LOAN A/C Y(LOAN AMOUNT)
TO CASH/BANK(PAID FROM YOUR OWN END)
WHEN EMI PAID
ANC BANK LOAN A/C (PRINCIPAL AMOUNT)
INTEREST ON CAR LOAN(INTEREST AMOUNT)
TO BANK A/C (EMI AMOUNT)
CAR A/C X
TO DEALER X
DEALER A/C X
TO ABC BANK LOAN A/C Y(LOAN AMOUNT)
TO CASH/BANK(PAID FROM YOUR OWN END)
WHEN EMI PAID
ANC BANK LOAN A/C (PRINCIPAL AMOUNT)
INTEREST ON CAR LOAN(INTEREST AMOUNT)
TO BANK A/C (EMI AMOUNT)
Message likes :
1 times
11 August 2010
Thanks for your prompt reply. There is loan Principal amount & Interest JV & down payment which we had paid etc....
11 August 2010
i think u should disclose on the face of the accounts or in the notes to accounts regarding this hypothication
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
