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?

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

Vehicle purchase journal
Bank loan a\c
Bank loan payment through sb a\c

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?

Quote:

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Originally Posted by Chunny

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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Yes you should include all acquisition costs in the vehicle cost