Accounting for a purchase of vehicle

Chunny · #1 Apr 22, 2007, 07:43 PM

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?

Superfly999 · 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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