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    Chunny's Avatar
    Chunny Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 22, 2007, 07:43 PM
    Accounting for a purchase of vehicle
    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's Avatar
    Superfly999 Posts: 235, Reputation: 14
    Full Member
    		  
    #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
    vpk's Avatar
    vpk Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Mar 8, 2012, 09:45 PM
    Vehicle purchase journal
    Bank loan a\c
    Bank loan payment through sb a\c
    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?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    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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