Hanoi Truck Accounting: A Comprehensive Guide to Bank Loans

Anh Tuan, a small grocery store owner on Hang Buom Street, always dreamed of owning a small truck to facilitate the transportation of goods. After years of saving, he decided to take out a bank loan to purchase one. However, when he researched the accounting procedures for buying a truck with a bank loan, he felt lost in a sea of information.

If you’re also planning to buy a truck through a bank loan and are concerned about accounting, let Xetaihanoi.edu.vn guide you through the details in this article!

What is truck loan accounting?

Truck loan accounting involves recording and reflecting the economic transactions related to purchasing a truck on installment in the company’s accounting books. This accounting must comply with current laws and accounting standards.

Why is truck loan accounting necessary?

Complete and accurate accounting helps businesses:

• Control assets: Track the value of the truck, loan amount, interest, and fixed asset depreciation.
• Comply with the law: Meet accounting, tax, and financial reporting requirements.
• Make informed business decisions: Provide useful information to evaluate investment efficiency, manage cash flow, and make effective business decisions.

Truck loan accounting process

Step 1: Sign the sales contract and loan agreement: Choose a reputable truck dealer, such as Dongfeng Auto on Giai Phong Street, Hai Ba Trung, Hanoi.

Step 2: Receive the truck and assets: Carefully inspect the truck before accepting it.

Step 3: Perform accounting: Record economic transactions in the accounting books.

Step 4: Depreciate fixed assets: Allocate the truck’s value to production and business expenses throughout its useful life.

Step 5: Repay the loan: According to the agreement in the loan contract with the bank.

Dongfeng truck dealership

Accounting items

• Original truck price
• Bank loan amount
• Interest payable
• Vehicle registration fees
• Vehicle insurance costs
• Fixed asset depreciation

Important notes for truck loan accounting

• Choose a loan that suits your business’s financial capabilities.
• Carefully review the loan agreement and sales contract before signing.
• Keep all relevant documents and records.