ACCOUNTING TREATMENT OF VEHICLE ON HIRE

Srikanth Dasari (ACCOUNTANT) (23 Points)

04 September 2020  

Hello,

One of my client is running business of renting of vehicles to GTA and he does not own any vehicles. He took 3 trucks on hire and renting those trucks to GTA. 

Can I show these hired trucks as assets and If I have show these trucks in balance sheet, What sholud be shown as liabilities.

Please suggest me with accounting entries.

Thank you