If we Pay insurence at the time of Purchase of vehicle Wether it treated as capital or revenue or revenue.
Giridhar S Karandikar
(Team Lead)
(7543 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
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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