A Company has own cars. Directors of company use them 4 business promotion. Inside & outside state. I want 2 know that which is right ledger for accounting of Petrol/Disel, like-r Vehicle running expenses or business promotion expenses?
5 Replies
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 22 May 2010
Although Vehicles are used for business promotion, the expenses for the same can be booked under Vehicle Running expenses since it is more specific.
Somaas Kandan
(CA Final)
(385 Points)
Replied 23 May 2010
yes, vehicle running expenses will be appropriate.
Nitin Grover
(CS)
(1228 Points)
Replied 23 May 2010
Dear Vikas
Business Promotion basically means to advertise it just like Airtel give advertise on cabs etc
in ur case they are expanding business and its duty of them even of every honour
so book exp. under Vehicle Running Expenses A/c
Regards
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 23 May 2010
Account this expenses under Vehicle Runing Expenses and if you maintains cost center accounting, then allocate this cost to Corporate overhead
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