If we Pay insurence at the time of Purchase of vehicle Wether it treated as capital or revenue or revenue.
5 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 19 June 2012
It will be debited to Prepaid A/c & treated as an other current asset. After that the amount pertaining to teh F.Y. would be debited to Insurance a/c & the balance would be c/f.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 19 June 2012
The 1st premisum paid shall be treated as Capital Expenditure. Whereas the next premiums paid can be debited to Profit and Loss Account.
Regards,
Devendra Kulkarni
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 19 June 2012
it is a capital expenditure.... angreed with Devendra
Gururaj V Megharaj
(IPCC)
(70 Points)
Replied 20 June 2012
its is revenue expediture n should be trf to p&L a/c
Ruchi Gupta
(CA)
(52 Points)
Replied 28 June 2012
first insurance will be capitalised to the cost of vehicle....and all other will be debited to profit and loss a/c
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
