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Accounting for a purchase of vehicle

Asked Apr 22, 2007, 07:43 PM — 4 Answers
Hi, If I'm purchasing vehicles for business, do I include the tax/title charges and the paint jobs for the business logos into the same entry as cost of vehicle?

Example:

Truck 50
Tax/title 10
Alterations for business purpose 20

What would be the entries?

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4 Answers
Superfly999's Avatar
Superfly999 Posts: 237, Reputation: 77
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#2

Apr 24, 2007, 07:10 AM
Well, you don't say if you are purchasing on account for some things or pure cash for everything. I believe it would go like this if cash.

Truck - dr. 50
Truck Expense - dr. 30
Cash - cr. 80

If on account it would probably be a mix of cash and on account do to the title/taxes. I'm going to put the truck and alterations on account in my example.

Truck - dr. 50
Truck Expense - dr. 30
Cash - cr. 10
Accounts Payable - cr. 70
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vpk's Avatar
vpk Posts: 1, Reputation: 1
New Member
  
#3

Mar 8, 2012, 08:45 PM
vehicle purchase journal
bank loan a\c
bank loan payment through sb a\c
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hitesh28's Avatar
hitesh28 Posts: 1, Reputation: 1
New Member
  
#4

Jun 8, 2012, 04:39 AM
Dear sir,

I have purchase one shift dezire care in 7 lac rs. with exchange old maruti car value of rs. 90000.00

What would be the entries?
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paraclete's Avatar
paraclete Posts: 1,879, Reputation: 585
Ultra Member
  
#5

Jun 8, 2012, 06:49 AM
Quote:
Originally Posted by Chunny View Post
Hi, If I'm purchasing vehicles for business, do I include the tax/title charges and the paint jobs for the business logos into the same entry as cost of vehicle?

Example:

Truck 50
Tax/title 10
Alterations for business purpose 20

What would be the entries?
Yes you should include all acquisition costs in the vehicle cost
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