Personal Car used for business purpose

This query is : Resolved

CA Garima Bhayana (Querist)
Follow

13 February 2020 If sole properitor had purchased a car few years back for personal purpose but now want to used that car for business purpose -
1.) Is that car shown at WDV in books ?
2.) Is Journal entry be - Asset dr , to Capital
3.) If installment is done from properitor personal account then also can properitor claim deduction of interest ?

Shrikant Toshniwal

Shrikant Toshniwal (Expert)
Follow

23 February 2020 Dear garima ,
you can used it for business purpose
1)u can introduce the car in books as fixed assets as car is purchase from ur capital withdrawal (personal).
2)yes
3)As u introduce car in books of account & used in business the expenses regarding it can be claim.

Message likes : 1 times