hii friends...........,
Can I capitalise insurance paid at the time of purchase of a vehicle. ? Or should it be charged off to p&l account..?
7 Replies
Nagaraju Pogula
(Partner)
(175 Points)
Replied 19 May 2008
Charge off to the P&L across the no of years paid for.
CA. Kirti S. Ganatra
(Service)
(1461 Points)
Replied 19 May 2008
First year you should capitalise and from next year charged to profit & Loss A/c.
SSA JI
(Ca Final )
(1970 Points)
Replied 19 May 2008
if it is included in the purchase bill and no seperate insurance bill is raised then it should be capitalised for that asset under same head
SSA JI
(Ca Final )
(1970 Points)
Replied 19 May 2008
as ther is no hard and fast rule for this u can charged it to pl a/c or capitalised it the benefit as depreciation can be availed as it capitalised and as expenses as it charged to p/l a/c . Only first time expenses should be capitalised and asset can be put to use without insurance
Akhil Agrawal
(student)
(600 Points)
Replied 19 May 2008
THE AMOUNT OF THE INSUARANCE PAID HAS TO BE CAPITALIZED AS THE SAME IS THE PRICE PAID TO BRING THE VEHICLE ON THE ROAD. SIMILARLY THE LOAN PROCESSING CHARGES (IF FINANCED) SHOULD BE CAPITALIZED AS THE SAME WAS INCURRED AT THE TIME OF PURCHASE OF THE ASSETS.
vijay shanker
(Service)
(24 Points)
Replied 10 January 2009
| Originally posted by :Davinder Singh | ||
| " | if it is included in the purchase bill and no seperate insurance bill is raised then it should be capitalised for that asset under same head | " |
vijay shanker
(Service)
(24 Points)
Replied 10 January 2009
What is the relevant accounting standard or other relevant regulation governing the same.
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