Company buy your car payments, as fixed assets should I recorded

Our company buy your car payments, as fixed assets how can I deposit? Full price into words and amortization entries do?


According to the provisions of the enterprise accounting system: mortgage purchase a car belonging to the long-term loan business, its accounting treatment for:

1 pay the first payment and related taxes and fees
Borrow: fixed assets
Borrow: bank deposit

2 mortgage loan
Borrow: fixed assets
Credit: long term loans

3 pay the mortgage
Borrow: financial costs (interest)
Borrow: long term loans (principal component)
Borrow: bank deposit

If not a bank mortgage, you can follow the accounting treatment, just:
1 "long-term loans" subject to "other payables accounts" or "long-term accounts payable" account instead of.
2 if the payment is interest free, debit "financial expenses" title can be omitted.

A supplementary question.

Should pay for the title of "loans" shall be included in what accounting subjects, depending on the nature of the "loan" and the repayment period, and whether to pay interest independent.

According to the accounting system for business enterprises (2001) the relevant provisions, if the enterprise is in more than one year of loans to banks and other financial institutions, it shall be recorded in the "long-term" subjects; if the problem in the enterprise is made to non bank financial institutions unit or individual loans, loan period in more than a year due to the long-term liabilities, then, shall be recorded in the "long-term accounts payable" title, only in the loan period within one year, as current liabilities recorded in the "other accounts payable" title.

As for the "long-term accounts payable" account content issues, according to the accounting system for business enterprises (2001) provides: "2321 long-term payables, the subjects of accounting firms in addition to long-term loans and other kinds of bonds payable other long-term payables. Including the use of the compensation trade under the introduction of foreign equipment price, deal with the finance lease fixed assets leasing fees". Note: "in addition to long-term loans and other kinds of bonds payable other long-term payables" sentence.