Vehicles
Cost of company cars, bikes, scooters and delivery vans, on the Balance Sheet. Depreciated monthly; fuel and servicing go to expenses.
In detail
Vehicles holds the cost of cars, jeeps, scooters, motorbikes and delivery vans the company owns, including the bluebook registration, first-year road tax and insurance needed to put the vehicle on the road. Fuel, servicing, tax and insurance renewals are running costs and go to Travel and Conveyance, Repairs and Maintenance or Insurance. The IRD pool rate for vehicles is 20 percent a year, and the monthly Depreciation Entry credits Accumulated Depreciation while this ledger keeps the cost. Tagging the Asset with a cost center, such as Marketing - YFF for a scooter used on client visits, puts its depreciation on that cost center's Profit and Loss. A vehicle put up for sale moves to Non-current Assets Held for Sale.
Formula
Monthly depreciation = (Cost incl. registration - Salvage value) / Useful life in months.
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Vehicles | Rs 4,50,000 | |
| Bank Account (rename me) | Rs 4,50,000 |
How to record it in BRAccount
- 01Go to Stock > Item > New, tick Is Fixed Asset and choose Asset Category Vehicles.
- 02Go to Invoicing > Purchase Invoice > New for the dealer, add the scooter at Rs 4,50,000 including registration, and Submit.
- 03Open the Asset from Assets > Asset, set Cost Center Marketing - YFF, the available-for-use date, life and salvage, and Submit.
- 04Pay the dealer with Payments > Payment Entry from the bank.
- 05Open the Vehicles ledger from the chart; the cost sits there until the vehicle is sold or scrapped.
When to use it
Post through an Asset record when the vehicle is bought. Include bluebook registration and first-year tax in the cost.
Example from the demo books
Dr Vehicles Rs 4,50,000, Cr Bank Account Rs 4,50,000 for a scooter used for client visits by the Marketing - YFF cost center.