Rental business

This query is : Resolved 

22 June 2014 I have a rental business of 50 trucks.i get income by giving sales invoice to parties.but there is no purchase invoice in my tally. so nothing is in my purchase side. i am entering fuel and maintenance cost under direct expenses.so how i calculate profit of my business.please help.

22 June 2014 Whether the trucks are owned by you or not?

22 June 2014 yes..owned by me only.


22 June 2014 these 50 trucks are entered as fixed assets.some trucks are in loan which i am paying EMI for that.

22 June 2014 YOu can charge interest on finance, depreciation, salary of driver, repair & maintenance, fuel as direct expenses.

22 June 2014 only direct expense will come under these type of business?

22 June 2014 No
all other business expenses can be booked.

22 June 2014 no purchases in this business?


22 June 2014 if you take service of other fleet owner, then you can book it as purchase

22 June 2014 no.not like that..its all my own vehicles.

22 June 2014 then no purchase a/c

22 June 2014 same for sewage accounts na? only collect sewage from parties and dump in one place.we are giving sale bill for sewage collection/ per trip.so no purchase bill.


23 June 2014 yes ................................

23 June 2014 you have truck and giving on the rent to party . you are giving the salary to driver and helper of driver, fuel, commercial tax, road tax , insurance of vehicle, repair , accidental repair, tyre, tube repair. body repair exp of turck and depreciation on the value of truck.

after above exp you calculate your profit.

23 June 2014 ok thank you very much for helping me sir.


24 June 2014 also i have some trucks having loan. am i am paying emi for that.how can it accounts.

now i put it in vehicle loan accounts(Loans & LIability). and from that i deduct EMI as payment to banks.is this is the correct way?

24 June 2014 i put closing balance on 31-03-2014 as per the loan statement as the opening balance of vehicle loan on 01-4-2014. And deducting the emi to banks as payment entry.

24 June 2014 please help me sir...............

25 June 2014 charge payment of principal to loan a/c and interest to p&L a/c. 31.03 balance and 01/04 is same thing

25 June 2014 please make it clear sir......

25 June 2014 1.Assumed that you are paying Rs.1,00,000/-as EMI and say it is Rs.75,000/- as principal amount and Rs.25,000/- towards interest

2.The entry as follows:-

Vehilce Loan a/c Dr 75,000

Interest on Vehicle loan a/c Dr 25,000

To Bank a/c 1,00,000

I hope this is in line with your requirement

26 June 2014 agree with sanjeev



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