Capitalization of assets.

Nutan Kumar (Article assistant) (58 Points)

15 July 2015  

Dear all

Motor vehicle is purchased by a company for on behalf of employees. Bill is in the name of the company itself. Out of the full cost incurred, part of the cost is recovered from employees. Now my question is at what value the asset should be capitalised.. Suppose the vehicle cost 50000(including insurance etc)..Out of which 10000 is recovered from employee.. now the company should account the asset at 50000 or 40000/-???? suggest me on what basis ur answer support like any AS / IT rules??

Thanks

Regards

Nutan